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Fitch affirms U.S. as AAA

posted 16 Aug 2011, 09:35 by Mpelembe   [ updated 16 Aug 2011, 09:37 ]

Summary of business headlines: Fitch keeps America at AAA; Wall Street trips over signs of weakening European economy, despite positive U.S. data.

The U.S. is still AAA in Fitch's book. The ratings agency reaffirmed America's stellar credit rating, saying the affirmation is based on the U.S. being a flexible, diversified and wealthy economy, and 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 having trouble at the start of the trading day as investors digest signs of economic weakness out of Europe.

That weakness is also overshadowing encouraging economic data out of the U.S. 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.

Conway Gittens, Reuters