The United States is still AAA in Fitch’s book. The ratings agency reaffirmed America’s stellar credit rating, saying the affirmation is based on the United States being a flexible, diversified and wealthy economy, and a pivotal player in the global financial system.
But Fitch did have a warning. If lawmakers don’t find a way to reduce the deficit by at least another $1.2 trillion, a ratings downgrade could result
But Wall Street is still having trouble, as investors digest signs of economic weakness out of Europe.
That weakness is also overshadowing encouraging economic data out of the United States.
Industrial production rose at its fastest pace in seven months, as supply disruptions from the Japanese earthquake further fade. And new housing construction projections fell less than expected in July, as builders work to meet higher demand for rental units.
Bottom line: Fitch keeps America at AAA; Wall Street trips over signs of weakening European economy, despite positive U.S. data.