After U.S. Super Committee members failed to reach an agreement to cut the U.S. deficit by at least $1.2 trillion, an automatic spending cuts will be activated now and are due to begin in 2013, while rating agencies said that there will be no immediate effects on the U.S. credit rating; however, Fitch said in a statement that this failure would likely result in a negative rating action.
Fitch also said that this disagreement was most likely a revision of the rating outlook to negative, which would indicate a greater than 50 percent chance of a downgrade over a two-year horizon. Less likely would be a one-notch downgrade.
Fitch also explained that U.S. top credit rating will remain valid; however the rating agency is expected to cut the outlook on the rating.
Standard & Poor's said that U.S. rating will not be affected by this disagreement.
Standard & Poor's also said the fiscal committee's inability to agree on fiscal measures that would stabilize U.S. government debt as a share of GDP is consistent with our August 5 decision to lower our rating to 'AA-plus'.
Moody's said regarding the disagreement among the Super Committee members that it was informative for the rating analysis but not decisive.
Moody's rates the long-term U.S. debt as triple-A, also with a negative outlook.