Fitch Ratings revises US credit outlook to negative

Kasmira Jefford
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FITCH Ratings has cut its outlook on US sovereign debt to negative, after the congressional super-committee failed last week to agree on at least $1.2 trillion in spending cuts.

Fitch said yesterday that it will keep its rating for long-term US debt at the top AAA level, but said the negative watch reflected its “declining confidence that timely fiscal measures necessary to place US public finances on a sustainable path…will be forthcoming”.

The move came as President Barack Obama told European officials yesterday that the US administration was “ready to do [its] part” to help Europe resolve the debt crisis, which is also weighing on the US.

Obama was speaking at the White House after a meeting with European Council president, Herman Van Rompuy, and European Commission president, Jose Manuel Barroso.