Fitch Threatens to Downgrade US, Too

Joins S&P and Moody's
By Kevin Spak,  Newser Staff
Posted Jul 18, 2011 3:43 PM CDT
Fitch is considering downgrading the US.   (Shutterstock)

(Newser) – The third major bond rating agency joined the chorus warning that the US is in danger of losing its AAA credit rating today. Fitch Ratings said it was placing US in the “ratings watch negative” category, which according to Politico can lead to a downgrade in three to six months.

That downgrade will come, the agency says, if the Treasury fails to pay bondholders on August 4 as promised. The agency said, however, that it still expects the US to reach a deal to prevent that occurrence. “Agreement on a credible fiscal consolidation strategy will secure the US' AAA status,” the agency said. “Failure to do so will inevitably weaken the sovereign credit profile and may result in a sovereign rating downgrade.”

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