(MENAFN) Fitch, the ratings firm, said that the US may lose its AAA status if it failed to avoid the fiscal cliff, reported Reuters.
The company, which has a negative outlook on its US sovereign rating, said that the US must prevent USD600 billion of spending cuts and tax increases from taking effect in early 2013 if it wants to keep its triple-A status.
Fitch added in its 2013 global outlook that if Washington failed to avoid the fiscal cliff, there will be a higher probability it would slide into an avoidable and unnecessary recession.
It is worth noting that a recession could reduce the US medium-term growth potential and financial stability.
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