Rumors that a Fitch Ratings downgrade of the United States appears to be false. We have tracked down the notes from this summer and the indication is that the review will be evaluated through late in 2013. If you go back to the July rating call the U.S. was maintained at “AAA” but with a negative outlook for the bias. In that report it stated,
Absent material adverse shocks, Fitch does not expect to resolve the Negative Outlook until late 2013. Fitch will take into account any deficit-reduction strategy that may emerge after Congressional and Presidential elections in addition to an updated assessment of the medium-term economic and fiscal outlook.
CNBC has now keyed in saying that it was told that the ratings agency referred them back to that same statement this July.
We would note that one thing which may have gotten this rumor going further was that Fitch did warn of broader capital spending slowdowns in 2013.
The market had been positive but both the DJIA and the S&P 500 Index have trickled down into negative territory.
JON C. OGG