Wednesday, December 21, 2011

Ratings agency Fitch warns US of possible credit downgrade

The ratings agency Fitch has warned that it may downgrade America's triple-A credit rating unless action was taken to reduce federal debt.

Fitch said the country's rising debt burden was not consistent with maintaining its top rating, but said it would probably not make a decision before 2013.

Last month, Fitch changed its US credit rating outlook to negative from stable, citing the failure of a special congressional committee to agree on at least $1.2tn in deficit-reduction measures.

"Federal debt will rise in the absence of expenditure and tax reforms that would address the challenges of rising health and social security spending as the population ages," Fitch said in a statement on Wednesday.

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