May 24, 2013
Fitch threatens to downgrade Obama's US
In the midst of the honeymoon of the reelection of US President Barack Obama, Fitch Ratings agency called the newly appointed head of state to quickly "secure agreement on avoiding the 'fiscal cliff' and raising the debt ceiling," to retain its "AAA" status.
The communiqué stated that "the economic policy challenge facing the President is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the US."
The agency also assured that the country's rating would be downgraded by 2013 if it fails to avoid the fiscal cliff, among other measures.
"The fiscal cliff and an increase in the debt ceiling are pressing issues that the President and Congress must address in the coming weeks if the US is to avoid a fiscal and economic crisis. Fitch estimates that the fiscal cliff would tip the US economy into an unnecessary and avoidable recession and result in an increase in the unemployment rate to above 10% in 2013," it continued.