Fitch Threatens to Strip America of 'AAA' Credit Rating

THE DAILY TELEGRAPH: Rating agency says it could slash America's prized rating, while further delays to raising the debt ceiling will damage the country's credibility

Fitch has warned that it could strip America of its prized "AAA" credit rating, amid heightening fears that the world’s largest economy is headed for a default.

Prolonged negotiations in Washington risk “undermining confidence in the role of the US dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the US,” Fitch said, as it placed the country on "negative watch". » | Katherine Rushton, US Business Editor | Tuesday, October 15, 2013

George Osborne Insists He Won't Change Course Despite Credit Rating Downgrade

THE GUARDIAN: Chancellor says he 'cannot let up' after move by Moody's which opposite number Ed Balls calls 'humiliating'

The chancellor has insisted that he will not change course despite the downgrade of Britain's credit rating in which he invested great political capital in maintaining.

George Osborne said Britain's situation would get very much worse if the government changed course after Moody's changed Britain's rating from AAA to AA1. The chancellor said previously the rating agency's triple-A rating was an endorsement of his austerity policies.

As far back as February 2010, he told an audience of Tory activists: "What investor is going to come to the UK when they fear a downgrade of our credit rating and a collapse of confidence?" In the Tory manifesto, published weeks later, he said: "We will safeguard Britain's credit rating with a credible plan to eliminate the bulk of the structural deficit over a parliament."

Ed Balls ,the shadow chancellor, described the downgrade as a "humiliating blow" for Osborne who was "ploughing on regardless with a plan which is not working".

In an interview at 11 Downing Street on Saturday, Osborne said: "I think we've got a very clear message, a loud and clear message that Britain cannot let up in dealing with its debts, dealing with its problems, cannot let up in making sure that Britain can pay its way in the world.

"What is the message from the ratings agency? Britain's got a debt problem. I agree with that. I've been telling the country for years that we've got a debt problem, we've got to deal with it."

Labour insisted the government had withdrawn demand from the economy which had slowed growth and increased the debt. » | Conal Urquhart, staff and agencies | Saturday, February 23, 2013

From Stable to Negative: Moody's Cuts Outlook for Germany's Top Rating
SPIEGEL ONLINE INTERNATIONAL: The debt crisis is threatening Germany's top credit rating. Moody's changed its outlook for Germany, the Netherlands and Luxembourg to negative from stable late on Monday. The German Finance Ministry said the country would remain an anchor of stability in the 17-nation euro zone.

Moody's Investors Service on Monday cut its outlook for Germany's creditworthiness to "negative" from "stable," but confirmed the country's triple-A rating.

Moody's also cut its outlook for the Netherlands and Luxembourg, which also have triple-A ratings, to negative from stable. Finland kept its stable outlook.

The ratings agency said the move was due to growing uncertainty caused by the debt crisis.

It said there was an increased chance that Greece could leave the euro zone, which "would set off a chain of financial sector shocks ... that policymakers could only contain at a very high cost."

It also warned that Germany and other countries rated AAA might have to increase support for ailing countries such as Spain and Italy. The burden of that support would fall most heavily on the euro zone's top-rated states, it said. » | cro -- with wire reports | Tuesday, July 24, 2012