Fitch Ratings revised the United States debt outlook to “negative,” in part because of the Supercommittee failure, and added that future deficit reduction must come from entitlement programs, not discretionary spending.

Fitch explained that “the Negative Outlook reflects Fitch’s declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path and secure the U.S. ‘AAA’ sovereign rating will be forthcoming following failure of the Congressional Joint Select Committee on Deficit Reduction (JSCDR) to agree at least USD1.2 trillion of measures to cut the federal budget deficit over the next 10 years as mandated under the Budget Control Act passed in August (BCA 2011).”

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