Fitch Warns U.S. On Credit Rating

Politico reports:

The Fitch ratings agency said on Tuesday it will place the U.S. credit rating on watch negative if Congress and President Barack Obama don’t agree to raise the nation’s debt ceiling by Aug. 2, Reuters reported.

“If we reach the second of August without a lifting of the debt ceiling, Fitch would assign a rating watch negative to the U.S. sovereign ratings,” Andrew Colquhoun, head of Fitch Asia-Pacific sovereign ratings, said at a conference in Singapore.

The comments are the latest credit warning as House GOP leaders and the White House continue to negotiate about raising the nation’s $14.3 trillion debt ceiling.

Nearly three weeks ago, a Moody’s report declared “review for possible downgrade” of U.S. credit would begin in July. That report said the federal government’s Aaa rating “would likely be affirmed” so long as the nation avoids default.

Aug. 2 is the announced deadline to reach a deal before the federal government reaches its debt ceiling.