Washington – Fitch says it will keep its rating for long-term U.S. debt at the top AAA level, despite a congressional panel’s failure to agree on long-term deficit cuts. But it is lowering its outlook to negative.
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The rating agency says it has less confidence in the federal government’s ability to take the necessary steps to rein in the deficit.
Moody’s Investors Services and Standard & Poor’s also left their ratings unchanged last week. But Moody’s threatened to lower its rating if Congress backed off $1.2 trillion in automatic cuts scheduled over the next decade.
S&P downgraded long-term U.S. debt in August to the second-highest level, AA-plus. It came days after Congress barely resolved a prolonged fight over raising the nation’s borrowing limit.