There are new doubts about the ability of the United States to get its financial house in order. After the market closed Monday Fitch Ratings announced it has revised its outlook on the US credit rating from “stable” to “negative.”
“The Negative Outlook reflects Fitch’s declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path and secure the U.S. ‘AAA’ sovereign rating will be forthcoming,” Fitch said in a statement.
Fitch said blame rests with the so-called congressional Supercommittee that failed to agree on spending cuts and tax increases to help reduce the nation’s deficit.
“By postponing the difficult decisions on tax and spending until after forthcoming Congressional and Presidential elections, the scale and pace of required deficit reduction will consequently be greater.”
Fitch maintained its AAA rating on US debt and indicated the risks of a downgrade appear minimal. The other credit ratings agencies, Moody’s and Standard and Poor’s, also left their AAA ratings unchanged.