Reykjavik, Dublin, Athens, Madrid, Rome.......Washington?

[marmar]

(Bloomberg) Fitch Ratings said the U.S. is under a review as the nation’s debt burden increases at a pace that isn’t consistent with an AAA sovereign credit rating.

The firm said it expects to complete the ratings review by the end of August given the approval today of debt-limit compromise that prevents a U.S. default. Standard & Poor’s and Moody’s Investors Service Inc. also have the U.S. under review for possible downgrades.

“Although the agreement is a good first step in adjusting the fiscal challenges that the U.S. faces, it is just a first step,” David Riley, Fitch’s London-based head of sovereign ratings, said in a telephone interview. “Does it mean that the AAA rating is completely secure of the medium term? No.”

The U.S. must confront “tough choices on tax and spending against a weak economic backdrop if the budget deficit and government debt is to be cut,” Fitch said in a statement today. The ratio of general government debt, including state and local governments, to gross domestic product is projected to climb to 100 percent in 2012, the most of any country with an AAA ranking, Fitch said in April. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-02/u-s-sovereign-rating-is-placed-under-review-by-fitch-as-debt-burden-grows.html