Fitch Issues Another Rating Warning For AmericAAA

Tyler Durden's picture

With precisely one month left until the early bound of the debt ceiling crunch and a possible US government shut down and/or technical default, and with M.A.D. warnings from the president and treasury secretary doing nothing to precipitate a sense of urgency (which will not arrive until there is a 20% market drop, so far consistently delayed but which will eventually happen), here comes the most toothless of rating agencies, French Fitch which somehow kept its mouth shut over the past 18 months, when US debt rose by over $2.1 trillion and debt to GDP hit 103%, shaking a little stick furiously, no doubt under guidance by its corporate HoldCo owners: French Fimilac SA.

From Reuters:

There is a material risk the United States would lose its triple-A if there is a repeat of 2011 wrangling over raising the country's self-imposed debt ceiling, rating firm Fitch said on Tuesday.


"If anything the pressure on the U.S. rating is increasing," Fitch's head of sovereign ratings David Riley said at a conference hosted by the firm.


"If we have a repeat of the August 2011 debt ceiling crisis we will place the U.S. rating under review. There will be a material risk of the U.S rating coming down," he added.

Oh no: not "under review" and anything but the dreaded material risk that the French rating agency will finally catch up to S&P on the US rating with only n 18 month delay. Anything but that...

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TerminalDebt's picture

OMG....If you stop borrowing we'll lower your debt rating.

JPM Hater001's picture

Careful or I will put your bullshit under review.

GetZeeGold's picture



Obama thinks he's Paris Hilton playing with daddy's credit cards.


Pay your bills bitchez........cause tomorrows party we have planned is going to be epic.


I luvs me a good party.

Rainman's picture

Oblameo will prosecute Fitch for unAmerikanism and all will be well for the $ 22 T debt extravaganza. Forward, komrades !

HoofHearted's picture

Egan-Jones is the only credit rating agency with any balls...or any credibility.

Cult_of_Reason's picture

Fitch: "...very likely prompt a downgrade even as debt obligations continued to be met."


"With no legal authorisation for net debt issuance, the Treasury would be forced to immediately eliminate the deficit - a fiscal contraction twice as great as the recently avoided 'fiscal cliff' - by delaying payments on commitments as they fall due. It is not assured that the Treasury would or legally could prioritise debt service over its myriad of other obligations, including social security payments, tax rebates and payments to contractors and employees. Arrears on such obligations would not constitute a default event from a sovereign rating perspective but very likely prompt a downgrade even as debt obligations continued to be met."


kliguy38's picture

TAKE THAT!! you lil beasty it mean shit .........but once the Germans realize they have no gold.....then the shit will hit the fan

LongSoupLine's picture

Fuck you Fitch...we haven't been AAA in decades.

Fucking corrupt ratings assholes...

fonzannoon's picture

Chartist you need to turn your gold chart upside down. Just a heads up.

Cookie's picture

shaking a little stick

JPM Hater001's picture

It's not a stick.  It's their bread for the day.

midtowng's picture

It's gonna happen. This won't end until we see a repeat of 2011.

JPM Hater001's picture

No repeat.  This miss will be too much for markets.

101 years and counting's picture

ROFL!  The USSA now monetizes 2/3 of its monthly deficit because there is no demand for tbills.  How USSA is still rated above junk is beyond me.  The ratings' agencies are an even bigger joke now than ever.

pupton's picture

Couldn't have put it better.  That's the thing that stands out to me - how much of our monthly outlays are paid for with printed money. 

Why would anyone invest in a company that was continuously diluting shareholder value by issuing new shares into the market?  Is it not true that when you offer new shares into the market you dilute the value of existing shares and the price drops to maintain the P/E ratio, etc.  Well, the "share price" of the US is WAAAAAYYYYYYYYYYY overvalued, because they have been diluting and diluting at an accellerating pace.  Which suckers would buy that Monopoly money is beyond me.


Rating is "Shit minus" in my book. 

Got silver?

Monedas's picture

What kinda phony rating system .... where the first five or so ratings (?) are all variations of "A and A-" .... known humourist and Israeli shill, Monedas, asks :   Why can't they use a top 10 list like David Letterman and everyone else ?       Monedas      1929      Comedy Jihad For World Metric Conformity And "The 10 Hour Clock" And  "The 10 is a dozen Committee ! "  World Tour

espirit's picture

I think you missed the point of...


One of these is not like the others..'s picture

Maybe I just don't understand, but who does America owe this debt to?

Is it not the bankers who were just bailed out by the taxpayers?

Does one hand not wash the other, and cannot the banks now extend the same courtesy to the taxpayers?

If not, then the banks need to go, do they not?

If my thinking is incorrect, would someone please post a correction for me to try and understand..

hedgeless_horseman's picture



You will find the answer to your question, and many others, in this book...

Tsar Pointless's picture

Hey, Fitch.

Pull my finger.

Inthemix96's picture

The rating agencies including the fuckers at Fitch are part of the problem.

For Gods sake, how any country could be rated AAA at this point in the game is beyond me, and with you lot monetizing 85bln a month????

Whole worlds gone collective bat-shit crazy folks.  And Fitch, fuck you lot as well, sideways, with a baseball bat.

AnAnonymous's picture

'Americans' need to keep the face and keep pretending their order is fair and square.

You know, 'american' justice and all...

Inthemix96's picture

Go shit on curb son.

You remind me of something called "Thrush", a symptom women can get during pregnancy.  Because you sure are an "Irritating Cunt", fuck off.

shovelhead's picture

That's why I invented fruit flavored Vagasil.

No downtime.

sharky2003's picture

I think it's agreed that we have a spending problem. So when a subset of politicians takes and stand and attempts to reign in the spending, our credit rating is at risk. BUT if everybody agreed to just keep on spending as if there's no tomorrow, everything is A-OK... What a POS fraud.

AccreditedEYE's picture

Trying h..a..r..d to pretend like this matters.... Not easy.

azzhatter's picture

AIG was AAA until it wasn't. Only in the surreal world of CB's could the US with 16.5T in debt be considered AAA or even BBB

GetZeeGold's picture



If it worries you we'll just sell you some CDS. That way if anything happens you'll be fine. How much can we put you down for?

mvsjcl's picture

Why don't we on the sly purchase Credit Default Swaps for the whole 16T dollar debt, then default on that debt. We could then collect the on the CDS's--instant $16T surplus!

Monedas's picture

What's our Ponzi Compliance rating AAA+ ?     Step and Fitch It, SA .... A French Nigger Rating Agency      Am I a Racist, Zionist Jew with Fascist leanings ?     So USA is A rated .... Belarus and Zimbabwe are rated C ?

wcvarones's picture

Reuters is spinning this to suggest Fitch just wants the ceiling lifted and doesn't care about deficit reduction.

Here's what Fitch actually said:

"In the absence of an agreed and credible medium-term deficit reduction plan that would be consistent with sustaining the economic recovery and restoring confidence in the long-run sustainability of U.S. public finances, the current negative outlook on the 'AAA' rating is likely to be resolved with a downgrade later this year even if another debt ceiling crisis is averted."


Professor Fate's picture

As if anyone believes in Moody's, S & P, or Fitch ratings anymore.  The Ponzi will continue until it doesn't.  Simple as that.  Its like a game of musical chairs where the music never stops.  There's not nearly seats but until someone pulls the plug and stops the music, who cares?  The question of the day is, did the Bundesbank just pull the plug?

"Push the Button, Max"

Fate the Magnificent 

Schmuck Raker's picture

Go ahead, and downgrade us. We will retaliate by calling you "Freedom" Fitch.

espirit's picture

Under the new regime, ratings reductions are called either international or domestic terrorism depending on origination location.

Thank You,

The Staff of the Disinformation Ministry. 

AnAnonymous's picture

Fitch give themselves another chance before disclosing their ratings have no influence on the rate the US borrows money.

Longer, but still more accurate.

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

Toolshed's picture

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

And the Chinese lie to anyone who will listen and attempt to screw EVERYONE!! They have no reservations about ass raping each other and especially enjoy taking advantage of the elderly, the young, and the defenseless. Also, their favorite hobby is to destroy the environment.

And this is the oldest "civilized" race on the planet? Not a good sign for humanity.

TheFourthStooge-ing's picture

AnAnonymous started out well when stating:

Fitch give themselves another chance before disclosing their ratings have no influence on the rate the US borrows money.

Very good insightings. Promising. Perhaps a new leaves overturned.

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

Ah, ah, now driven into a ditch, leaving brown roadside skidmark, with hokey theorizings of a failed academic.

Problems with Chinese citizenism is that is a faith rooted in a no evidence ground. Such lack of groundings removes any potential Tao philosphic. Pouring of Chinese citizenism utterings thus rendered to failed academics and failed philosphics.

Inability for self indiction removes possibility of learning and improvement. Chinese citizenism stagnates like roadside dung droppings.

MyBrothersKeeper's picture

I agree with the sentiment here:  that we are living in collective lunacy.  We have 16.5 T in debt, a 1 T budget deficit, and 123 T in unfunded the rating agency warns, "if you don't raise the debt ceiling" (which common sense would tell you means spending more money we don't have) your credit rating may be at risk.  Wouldn't that be like Experian saying they are going to lower my credit score unless I can get an even higher limit on my credit cards?

And Europe?  Wow. Individual countries can't even print money and there has been virtually zero recapitalization of banks and most soveirgn credit ratings over there are still at investment grade.  Even Greece was just upgraded.

Heck why don't we all max our credit out and party like it's 1999 (you know just before the tech bubble recession) and then declare bankruptcy.  Be careful about saying it too loud though, someone might overhear you and then a Nobel Prize type writer will pen a piece about how "good" that would be for the economy.

overmedicatedundersexed's picture

credit ratings are for the lenders, as long as they get the vig, you got good credit no matter how much further into debt you ratings are for the banks and a weapon of the banks - mankind ruled by global banks like a badly written si fi movie. see they live you may then wake up

venturen's picture

What problem?....The US dollar is backed by trees and cotton fiber and ink though I suspect the printing presses might wear out...we could just print million dollar where is the problem... you will always get a piece of paper back.  

Caracalla's picture

Wish I had bought the dip yesterday on TZA  :-(

Panafrican Funktron Robot's picture

TZA down .02 so far as of 11:45 am.  This with the headline S&P down 2.80.  Funny how that works.  

vote_libertarian_party's picture

Moodys says cut your deficit or we will downgrade


Fitch says keep the debt climbing un-interupted or we will downgrade



I smell a downgrade from somebody around the corner

AgAu_man's picture

If you stop borrowing, we'll reduce your Addict status rating amongst us Dealers.