Fitch lowers US rating outlook to Negative

Global credit rating major Fitch has revised down US rating outlook to Negative on its existing -AAA- credit rating because of logjam in the Congress Committee. Last week the Congress committee has failed to finalize its USD 1.2 trillion deficit reduction plans and triggered the lower revision of the credit rating outlook.

The lower rating outlook indicates lower confidence in US economy and increases the possibility of a rating cut in the immediate future if the logjam in the US Congress Committee continues in order to reduce its fiscal deficit and mounting debt. Failing to finalize any deficit reduction plan will automatically trigger a motion aiming to cut reduction by USD 1.2 trillion over the next 10 years. The deficit reduction plan will cut US Government spending in domestic and military programs over the next decade.