WASHINGTON — Fitch says it will keep its rating for long-term U.S. debt at the top AAA level, despite a congressional panel’s failure to agree on long-term deficit cuts. But it is lowering its outlook to negative.
The rating agency says it has less confidence in the federal government’s ability to take the necessary steps to rein in the deficit.
Moody’s Investors Services and Standard & Poor’s also left their ratings unchanged last week. But Moody’s threatened to lower its rating if Congress backed off $1.2 trillion in automatic cuts scheduled over the next decade.
S&P downgraded long-term U.S. debt in August to the second-highest level, AA-plus. It came days after Congress barely resolved a prolonged fight over raising the nation’s borrowing limit.