Posted on 08/16/2011 9:37:33 AM PDT by SeekAndFind
(Reuters) - Fitch Ratings said on Tuesday it affirmed the United States' top-notch credit rating at AAA, giving the world's largest economy a reprieve after it was downgraded by Standard & Poor's little more than a week ago.
Fitch said the outlook for the rating was stable.
However, it warned that the United States was falling behind its peers among the AAA-rated nations on fiscal matters and the country had to show tangible results in its efforts to reduce the budget deficit.
It said it would review its fiscal projections at the end of November and medium-term economic outlook by the end of the year.
"The affirmation of the US 'AAA' sovereign rating reflects the fact that the key pillars of US's exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base," Fitch said in its statement.
"Monetary and exchange rate flexibility further enhances the capacity of the economy to absorb and adjust to 'shocks'."
Financial markets showed little reaction to the news, which also coincided with the release of industrial output data.
U.S. government bonds pared some price gains slightly and the dollar edged up to the day's highs against the yen.
However, Fitch warned the outlook for the rating depended on the economy and the ability of the political process in Washington to reduce the public debt.
"S&P had a very specific basis for their concern which was that there was no long-run plan for budget control," said Pierre Ellis, senior economist, Decision Economics, New York.
(Excerpt) Read more at reuters.com ...
So, Mr. Fitch spokesman, how much gold have you purchased in the last year?
So, now Fitch has shown that their economic expertise is equal to Al Gore’s scientific expertise.
Bleh.....
Now we know for sure who owns Fitch.
Lets see...we’re still triple A, but ‘falling behind other nations’. Wouldn’t that be what the double A rating is meant for?
Interesting... I wonder how much that cost obama?
Fitch is owned half by a French company and the other half is the Obama supporting Hearst corporation.
what is Fitch, and how much did it cost?
Fitch is one of the 3 Biggest ratings agencies in the United States. S&P and Moody’s being the other two.
Of course there are other ratings agencies (e.g. A.M Best) but S&P, Moody’s and Fitch are considered the big 3.
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