LONDON Dec 19 Ratings firm Fitch warned on
Wednesday there was an increased likelihood it would strip the
U.S. of its triple-A status if Washington does not prevent $600
billion of spending cuts and tax hikes from kicking in early
"Failure to avoid the fiscal cliff.. would exacerbate rather
than diminish the uncertainty over fiscal policy, and tip the US
into an avoidable and unnecessary recession," Fitch said in its
2013 global outlook published on Wednesday.
"That could erode medium-term growth potential and financial
stability. In such a scenario, there would be an increased
likelihood that the U.S. would lose its AAA status."
Fitch current has a negative outlook on its U.S. sovereign
rating. Rival rating agency Standard & Poor's was the first to
strip the U.S. of its triple-A status in August last year.