Fitch Ratings has issued a warning to the U.S. for a possible credit rating downgrade from AAA. In a press release issued on Tuesday, they expect to conclude a review within the next six month under a “rating watch negative.”
Fitch believes that the debt ceiling will be raised; however, the “political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default.”
According to reports, the US must raise it’s $16.7tn debt limit by Thursday or risk default. Fitch said the government would have only limited capacity to make payments on the $16.7 trillion national debt after Treasury Department’s emergency measures run out Thursday.
“The announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy,” the Treasury Department said in response.
A scheduled House Rules Committee hearing on the GOP leadership’s plan to end a partial government shutdown was postponed on Tuesday.
The Dow Jones industrial average fell 133 points after rising a day earlier.
Fitch is one of three leading U.S. credit ratings agencies including Standard & Poor’s and Moody’s.