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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 4 Lis

save the date.

Serguei avatar
Serguei 3 Gru

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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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 Paź

scare :((

seediee avatar
seediee 9 Paź

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

tieru999 avatar
tieru999 9 Paź

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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