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

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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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