Fitch Puts U.S. Credit Rating on Negative Watch

“This just in: credit rating agency Fitch has revised the outlook for the U.S.A.’s AAA credit rating to negative from stable.

The news comes just as the latest talks in Washington, D.C. over how to raise the debt ceiling and end the government shutdown seem to be falling apart.

“The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S.,” said Fitch in a press release. “This ‘faith’ is a key reason why the U.S. ‘AAA’ rating can tolerate a substantially higher level of public debt than other ‘AAA’ sovereigns.”

Fitch and Moody’s still rate the U.S. AAA, the highest credit rating on the scale.

S&P, the other of the three key rating agencies, stripped America of its AAA rating back in 2011 during the last debt ceiling crisis, citing political instability as the key driver of the downgrade.

Below is the full text of the Fitch release…”

Full report