NEW YORK Feb 27 Fitch Ratings on Wednesday said
implementation of automatic U.S. government spending cuts due
March 1, along with a government shutdown, would not prompt a
negative rating action.
Implementation of the spending cuts, known as the
"sequester," and a government shutdown, would however "further
erode confidence that timely agreement will be reached on
additional deficit reduction measures necessary to secure the
'AAA' rating," Fitch said in a statement.
Fitch said the suspension of the debt limit to May 19 has
reduced pressure on the U.S. 'AAA' rating, and said it does not
expect a repeat of the U.S. debt ceiling crisis of August 2011.
Failure to raise the debt ceiling in a timely fashion
however would prompt a review and likely downgrade of the U.S.
sovereign rating, Fitch said.