Fitch Says U.S. Debt Rating Precarious

""Fitch Ratings"":www.fitchratings.com/ revealed some bad news for the U.S. recently, releasing updated statistics that indicate the country's AAA sovereign debt rating could be in jeopardy as early as 2013. The agency stated in its report that, should policymakers fail to make strides in curbing the federal deficit, the nation will lose its current rating.

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While ""Standard & Poor's"":www.standardandpoors.com/ has already downgraded its evaluation of U.S. sovereign debt, dropping it to AA+ in August, both Fitch and ""Moody's Investor Service"":www.moodys.com/ have continued to uphold the

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AAA rating. However, the company is now forecasting a possible downgrade if the fiscal picture in the country grows more precarious over the next 12 to 18 months.

Of its findings, Fitch noted, ""By postponing the difficult decisions on tax and spending until after the forthcoming congressional and presidential elections, the scale and pace of required deficit reduction will consequently be greater."" Continuing its commentary, the ratings giant pointed out that deficit relief and reduction efforts would have to provide between $3 and 5 trillion in federal debt to create stable conditions.

Fitch cited missteps on the part of lawmakers, as well as political turmoil, among the chief roadblocks to successful debt reform by 2013. Specifically, the company stated that the defunct Joint Select Committee on Deficit Reduction, which would've chopped $1.2 trillion off of the current U.S. deficit, had put even more pressure on the debt problems, as politicians gear up for the 2012 elections.

In closing, Fitch's report confirmed that the current policy climate would likely ensure a downgrade for U.S. debt no later than 2013, and the ratings agency also emphasized the importance of Congressional and White House support for developing a viable budget plan.