Fitch says `fiscal cliff' may cost US `AAA' rating

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by Associated Press

WHAS11.com

Posted on December 19, 2012 at 7:48 PM

NEW YORK (AP) -- Fitch Ratings is warning that the U.S. is more likely to lose its top-notch "AAA" rating if lawmakers cannot agree on how to cut the deficit, sending the country over the "fiscal cliff" of broad government spending cuts and tax increases next year.
 
But the credit ratings agency said in a report Wednesday that if lawmakers can agree on a deficit-cutting plan, the U.S. would be more likely keep its "AAA" debt rating. Fitch would raise its outlook to stable from negative
 
In November Fitch said that President Barack Obama must work toward a credible plan to avoid the fiscal cliff or risk losing its "AAA" rating.

In the first-ever downgrade of U.S. government debt, Standard & Poor's last year cut its rating from "`AAA" to "AA+."

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