«Fitch may downgrade the US rating because of the shutdown» — with such heading was published on RIA Novosti, and then the news rushed to convey all the key news agencies and publications of Russia, including business.
«Fitch may deprive the United States the highest credit rating of AAA this year, if the authorities in the coming months will not find a way out of the budget impasse. About a quarter of the governmental departments have been working for 19 days, as the White house and Congress failed to adopt all the necessary laws on the budget this year,» write, for example, statements.
Fitch: disable (shutdown) is not directly influenced «AAA»
We are talking about is published on the official website of the Fitch release, «the Closure of the US government demonstrates the weakness of policy.» Here is really expressed criticism of the political elite allow such a situation, but not a word about the downgrade: «shutdown (shutdown) do not directly impact on’ AAA ‘/ Stable sovereign rating of the country, but may indicate that disputes on other issues are obstacle to the formation of a tax policy».
Fitch analysts in the report, listing the details of trump’s dispute with the Democrats, noted that the current balance of power limits the ability of a policy and are wondering: «the Main value of our sovereign credit views United States will depend on whether we regard that this closure foreshadows a more significant destabilization in the formation of fiscal policy, including overcoming the verge of exceeding the debt limit, which occurred in October 2013.»
But then just come to the conclusion that it is unlikely the current shutdown will lead to lower ratings. Fitch experts note that «the adoption by the House Democrats new version of the so-called rules of Gephardt linking the suspension of debt limits with the adoption of the decisions on the budget, might reduce the likelihood of deadlocks and Democratic control of the house reduces the prospect of additional, significant tax cuts over the next two years, although the expenses is also unlikely. The policies adopted by the new Congress could affect the financial results of the United States, although we expect that the impact on our deficit projections will be relatively limited. These include plans for the re-introduction of a budget rule «PAYGO», according to which any changes in the legislation affecting mandatory spending not increase the budget deficit.»
Somehow, in the Russian media got selectively only negative part of the report, and the conclusions of the authors from the Russian supply of this material and all fell out.
Oil poured into the fire an interview given to CNBC, the head of Fitch sovereign ratings James McCormack. He responded negatively about the US budget and debt. Direct statements about the revision of the rating was not, but the interpreters have commented on his statements as fact the decision already taken.
