NEW YORK, Feb. 27 (Xinhua) -- Fitch Ratings said on Wednesday that implementation of automatic spending cuts due on March 1 would not prompt a negative rating action.
"That such an outcome would further erode confidence that timely agreement will be reached on additional deficit reduction measures necessary to secure the 'AAA' rating," Fitch warned.
The suspension of the debt limit until May 19, 2013 has reduced the near-term pressure on the U.S. 'AAA' rating, it said.
Fitch said it did not anticipate a repeat of the debt ceiling crisis of August 2011 but a failure to raise the debt ceiling in a timely fashion would prompt a review and likely downgrade of the U. S. sovereign rating.
The global reserve currency status of the U.S. dollar and the benchmark status of Treasury securities as well as the size, diversity and relative dynamism of the economy mean that the U.S. has a higher debt tolerance for a given rating level than any other sovereign, it said.