Fitch: If The US Doesn't Shape Up...Something Of Little To Consequence Might Happen

Fitch’s outlook on the U.S., which it still assigns its top AAA grade, reflects declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path will be forthcoming, the company said in a statement today. Standard & Poor’s and Moody’s Investors Service said Nov. 21 that the so-called supercommittee’s inability to reach an agreement didn’t merit a downgrade because the inaction will trigger $1.2 trillion in automatic spending cuts...“In terms of additional information, a Fitch negative outlook doesn’t seem that significant,” Guy LeBas, chief fixed- income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the announcement. “A negative outlook from Fitch just adds one more voice to the chorus of a slowly deteriorating U.S. fiscal situation.” [Bloomberg]