Thursday, 20 December 2012

Fitch says 'fiscal cliff' may cost US 'AAA' rating

NEW YORK (AP) -- Fitch Ratings is warning that the U.S. is more likely to lose its top-notch "AAA" rating if lawmakers cannot agree on how to cut the deficit, sending the country over the "fiscal cliff" of broad government spending cuts and tax increases next year.

But the credit ratings agency said in a report Wednesday that if lawmakers can agree on a deficit-cutting plan, the U.S. would be more likely keep its "AAA" debt rating. Fitch would raise its outlook to stable from negative

In November Fitch said that President Barack Obama must work toward a credible plan to avoid the fiscal cliff or risk losing its "AAA" rating.

In the first-ever downgrade of U.S. government debt, Standard & Poor's last year cut its rating from "'AAA" to "AA+."

Source: http://news.yahoo.com/fitch-says-fiscal-cliff-may-124517655.html

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