Daily News: June 7, 2012

Fitch: U.S. Rating Faces 2013 Cut if Lacking ‘Credible’ Plan

Reuters reported that Fitch Ratings reiterated on Thursday (6/7/12) it would cut its sovereign credit rating for the United States next year if Washington cannot come to grips with its deficits and create a “credible” fiscal consolidation plan.

Fitch also said it would immediately cut the credit ratings on Cyprus, Ireland, Italy, Spain and Portugal if Greece were to exit the euro-zone and that all euro-zone nations would have their ratings put on its negative ratings watch list, setting a six-month time frame for a potential downgrade, according to Reuters.

The article quoted Ed Parker, sovereign ratings analyst, as telling a Fitch conference in New York that: “The United States is the only country [of four major AAA-rated countries] which does not have a credible fiscal consolidation plan.”

To read the full Reuters article, click here.