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Fiscal Cliff May Lead To Credit Rating Downgrade Warns Fitch

  • Fitch Ratings, one of the world's leading credit rating companies warned yesterday that if talks between the Democrats and Republicans over the fiscal cliff dragged on without resolution, Fitch may downgrade the nation's economic ratings. If, however, an amicable compromise and a decisive action plan are reached, it may consider resolving the negative outlook on US ratings. “Fitch has identified the U.S. fiscal cliff as the single biggest, near-term threat to the world economy, given its potential to tip the U.S. into an unnecessary and avoidable recession, with negative implications for global growth,” the Fitch report said.