A voter backlash returned a socialist government in France andboosted the chances for the same in Greece which could put its130-billion-euro international bailout plan in jeopardy. Fitch revised down its credit outlook for the United States tonegative in November from stable after a special congressionalcommittee failed to agree on at least $1.2 trillion indeficit-reduction measures. At the time it said there was a chance for a U.S. downgrade in2013, saying the failure of the committee increases the fiscalburden on the next administration. A change in an outlook sets a 12-18 month time frame for making adecision.
A negative outlook signifies there is a greater than 50percent chance for a downgrade, and vice versa if the outlook ispositive. "The United States is the only one of the four largest economieswhose debt as a percentage of GDP is expected to increase over thenext five or six years," Parker said, referring to the UnitedStates, Britain, Germany and France. The U.S. economy's growth rate in the first quarter was reviseddown last month to 1.9 percent from a prior estimate of 2.2 percentas businesses restocked shelves at a moderate pace and governmentspending declined sharply. It grew 3.0 percent in the fourthquarter of 2011.
Standard & Poor's made history in August 2011 when it cut theU.S. credit rating to AA-plus from AAA. It has held it with anegative outlook ever since. Moody's Investors Service has the United States rated at Aaa, alsowith a negative outlook as of November last year. All three of the ratings agencies have said they essentially do notexpect much change in the U.S. Ipad Leather Case Bluetooth Keyboard
budget situation or fiscal positionuntil after the November presidential election. The negative outlook from S&P gives it a six-to-24-month windowfor making a decision while Moody's defines its time frame as 12 to18 months. Fitch respects the size and flexibility of the U.S. economy but the"rising trajectory" of its debt could lead to the same kind ofeconomic stagnancy that has long plagued Japan, Parker said. Europe Parker said Fitch considers credible the current fiscal plans forBritain, France, Germany and other major AAA-rated nations. Ipad Case With Bluetooth Keyboard
However, he did warn that the firm could cut Britain's AAA ratingif there is a "further material downturn" in its economy. Fitch, in March, put Britain on a negative outlook, similar toMoody's Investors Service. S&P has a stable outlook on it. Parker said Britain, unlike Germany and France, is the mostsensitive of Europe's large economies to the fallout from a Greeceexit. "The euro zone is the UK's biggest export market" and has manybanks with exposure to peripheral countries in the region, Parkersaid on the sidelines of the conference. Ipad Leather Cases and Covers Manufacturer
Fitch rates Spain the highest of the three agencies at A, followedby Italy at A-minus; Ireland at BBB-plus; Cyprus at BBB-minus. Allof these are at investment grade, save for Portugal's junk statusBB-plus rating. However, all of these ratings currently have anegative outlook.
A negative outlook signifies there is a greater than 50percent chance for a downgrade, and vice versa if the outlook ispositive. "The United States is the only one of the four largest economieswhose debt as a percentage of GDP is expected to increase over thenext five or six years," Parker said, referring to the UnitedStates, Britain, Germany and France. The U.S. economy's growth rate in the first quarter was reviseddown last month to 1.9 percent from a prior estimate of 2.2 percentas businesses restocked shelves at a moderate pace and governmentspending declined sharply. It grew 3.0 percent in the fourthquarter of 2011.
Standard & Poor's made history in August 2011 when it cut theU.S. credit rating to AA-plus from AAA. It has held it with anegative outlook ever since. Moody's Investors Service has the United States rated at Aaa, alsowith a negative outlook as of November last year. All three of the ratings agencies have said they essentially do notexpect much change in the U.S. Ipad Leather Case Bluetooth Keyboard
budget situation or fiscal positionuntil after the November presidential election. The negative outlook from S&P gives it a six-to-24-month windowfor making a decision while Moody's defines its time frame as 12 to18 months. Fitch respects the size and flexibility of the U.S. economy but the"rising trajectory" of its debt could lead to the same kind ofeconomic stagnancy that has long plagued Japan, Parker said. Europe Parker said Fitch considers credible the current fiscal plans forBritain, France, Germany and other major AAA-rated nations. Ipad Case With Bluetooth Keyboard
However, he did warn that the firm could cut Britain's AAA ratingif there is a "further material downturn" in its economy. Fitch, in March, put Britain on a negative outlook, similar toMoody's Investors Service. S&P has a stable outlook on it. Parker said Britain, unlike Germany and France, is the mostsensitive of Europe's large economies to the fallout from a Greeceexit. "The euro zone is the UK's biggest export market" and has manybanks with exposure to peripheral countries in the region, Parkersaid on the sidelines of the conference. Ipad Leather Cases and Covers Manufacturer
Fitch rates Spain the highest of the three agencies at A, followedby Italy at A-minus; Ireland at BBB-plus; Cyprus at BBB-minus. Allof these are at investment grade, save for Portugal's junk statusBB-plus rating. However, all of these ratings currently have anegative outlook.