Ratings Agency Would Prefer Not to Be Sued, Won’t Cut U.S. Debt Rating

Fitch Ratings does not want to find itself in S&P’s shoes.

While triggering the U.S. spending cuts known as the sequester and a government shutdown won’t prompt a ratings downgrade, those outcomes “erode confidence” of achieving deficit reduction needed to sustain the nation’s top credit grade, according to Fitch Ratings.

In other words, don’t make these $1.3 trillion in budget cuts because it makes you look like a banana republic. But do cut the deficit by $1.6 trillion. Either way, we probably won’t downgrade you because we’d rather not be sued for everything and more.

Sequester Won’t Spur U.S. AAA Rating Downgrade, Fitch Says [Bloomberg]

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10 Responses to “Ratings Agency Would Prefer Not to Be Sued, Won’t Cut U.S. Debt Rating”

  1. asianbankingsensation says:


  2. Short Shazar Quant says:

    2007-08 ratings agency commentary on structured products, add that to the list of things that add more value and make more sense than Jon Shazar.

  3. Alpha_Bets says:

    I feel like I need a SHAZMAT suit to read this pollution.

  4. Guest says:

    Hi Shazar, my name is ShaZeef. I feel we could be very big friends.

  5. Guestido says:

    Shazar, S&P is being sued for intentionally misrating deals (you even elude to this by linking Matt's article), not for downgrading the Government. Apples and oranges my friend. Lock it up.

  6. C. Bigsby says:

    Sir! I am going to make this very clear. I am in no way, shape, or form involved in any Shazardom.