Fitch Issues Another Rating Warning For AmericAAA
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.
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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