Downgrades: 6 Things You Need To Know

The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy . The United States appears to be losing its status as the world’s top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques. While China’s 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries’ crude consumption varies significantly. The United States could be the world’s largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously. See more on this topic in the following video. Stocks to buy to play the United States energy bonanza Record oil and natural gas production is revolutionizing the United States’ energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry willpad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, ” 3 Stocks for the American Energy Bonanza .” Don’t miss out on this timely opportunity; click here to access your report — it’s absolutely free. Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days .

Fitch Places United States’ ‘AAA’ on Rating Watch Negative

Even if the debt limit is not raised before or shortly after 17 October, we assume there is sufficient political will and capacity to ensure that Treasury securities will continue to be honoured in full and on time. Fitch’s federal debt projections reflect its economic and fiscal policy assumptions and were detailed in the Special Report, ‘U.S. Medium-Term Fiscal Projections – An Update’ (dated 28 June 2013; see link below). Subsequent to that analysis, the Bureau of Economic Analysis revised the level of GDP up by around 3.4% due to revisions in the way GDP is calculated, including reclassifying spending on R&D and intellectual property as investment. This has had the statistical effect of lowering debt/GDP ratios, but has not significantly affected the trajectory of debt dynamics or its sensitivity to shocks. Since the June review, Fitch has revised down its forecasts for GDP growth for 2013 to 1.6% from 1.9% and for 2014 to 2.6% from 2.8%. Fitch’s medium-term fiscal projections incorporate assumptions regarding the medium-term growth potential of the US economy and do not incorporate potential upside benefits from shale gas or downside risks emanating from the eurozone and elsewhere. They draw heavily upon Congressional Budget Office (CBO) projections, including CBO assumptions and judgements regarding the take up of various benefits as well as the rate of growth of health care spending. Financial sector risks are currently judged to be low as reflected by Fitch’s stable outlook for the U.S. banking sector. Contact: Primary Analyst Ed Parker Managing Director +44 20 3530 1176 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Tony Stringer Managing Director +44 20 3530 1219 Committee Chairperson Douglas Renwick Senior Director +44 20 3530 1045 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com; Daniel Noonan, New York, Tel: +1 (212) 908-0706, Email: daniel.noonan@fitchratings.com.

downgrade faq

Some firms use their ratings as guidelines when making investment decisions. Related: Survey says economists aren’t concerned What are the U.S. ratings? U.S. debt had been rated AAA by all three agencies for as long anyone can remember. Moody’s, for example, first assigned the United States a AAA rating in 1917. Right now, Fitch and Moody’s have a AAA rating on U.S. debt. The country’s S&P rating is AA+ — still strong, but not the highest. It’s on par with that of France, but below countries like the United Kingdom and Australia. Why is another downgrade possible? Fitch said Tuesday that it had put the United States on review for a possible downgrade, saying the “political brinkmanship” on display in Washington increases the risk of the U.S. defaulting on its debts. The country is now on “rating watch negative,” meaning that there is increased possibility of a downgrade in the near future.