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Fitch warns US to behave in future

On the 15th October Fitch put the US on rating watch over the shutdown/budget debacle but has today issued a strong warning that the US needs to buck its ideas up. A repeat of the debt ceiling crisis would not be a good signal to keep the triple A rating and they must take more steps to reduce the deficit and debt burden, they said.
Fitch will decide on the US rating in March 2014.
"Nothing is pre-determined, but that wouldn’t be a good signal if we have that kind of outcome again,” Said Fitch …
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mag avatar
mag 4 nov

save the date.

Serguei avatar
Serguei 3 déc

It seems the credit rating agencies have too much to say these days. It's up to the fixed-income fund managers to decide on the creditworthiness of institutions or governments. A credit rating agency does a great job of influencing the market's perception, not the opinion. Basically, what I am trying to say, is that as with other types of trading, you need to align your positioning with that of the market at large. Being too smart may leave one exposed to unpredictable outbursts of the emotional crowd that the traders are. You have no option but to follow the pack leaders or protagonists.

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Fitch decision to put United States rating down

Fitch Places United States’ ‘AAA’ on Rating Watch Negative

Fitch Ratings-New York/London-15 October 2013: Fitch Ratings has placed the United States of America’s (U.S.) ‘AAA’ Long-term foreign and local currency Issuer Default Ratings (IDRs) on Rating Watch Negative (RWN). The ratings of all outstanding U.S.sovereign debt securities have also been placed on RWN, as has the U.S. Short-term foreign currency rating of ‘F1+’. The Outlook on the Long-term ratings was previously Negative. The U.S. Co…
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mag 16 oct

It is clear, the question is Moodys and S&P

mag avatar
mag 16 oct

Thanks Anna.

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Fitch places US on AAA watch negative

Fitch warning they may cut the US ‘AAA’ rating.
Fitch citing the fact that authorities have not raised the federal debt ceiling in a timely manner before the Treasury exhausts extraordinary measures
Fitch says they believe the debt ceiling will be raised soon but that “Political brinksmanship and reduced financing flexibility could increase the risk of a US default”
Say they will resolve the rating watch negative status by the end of Q1 2014
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DBRS puts US rating under review with negative implications

The smaller ratings agency, DBRS, is considering downgrading the AAA-rating of the US.
• Action reflects the growing risk of a selective default by the federal government on its debt securities
• If the debt ceiling is not raised or eliminated by October 17, it is unclear how the Treasury would operate
• While a low probability, missing payments on selected government securities cannot be ruled out the longer it takes for an agreement to be reached on the debt ceiling, the greater the risk of…
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mag 13 oct

Fitch is french company... the question is has made Moodys and S&P ?

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What are the ratings agencies doing?

If any other country was threatening to default in 9 days the ratings agencies would have already issued a downgrade.
At the very least, they should be issuing a negative creditwatch. In June, Fitch affirmed the US with a AAA-rating with a negative outlook. The reason for the negative outlook was uncertainty over prospect for additional deficit-reduction measures, near-term risks associated with expiration of federal appropriations authority and “in particular” timely increase in debt limit.
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mag 9 oct

scare :((

seediee avatar
seediee 9 oct

They rated my country as trash, garbage... :( and now I have to live here! :(

tieru999 avatar

Yea their so called "objective ratings" are disputable at best, since they rated now "toxic mortgage packages" with suprising AAA... I stopped even reading their releases (FITCH, MOODYS ... S&P) since 2008.

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