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Credit rating agency Fitch warned on Wednesday that the United States’ AAA rating could be downgraded if a deal to raise the nation’s borrowing limit isn’t reached before the Treasury runs out of money to pay the country’s bills.
“The Rating Watch Negative reflects increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit despite the fast-approaching x date,” the agency said.
The US currently holds the highest rating possible for credit worthiness.
Fitch said it believes the White House and Congress will be able to raise the debt ceiling before the “x-date” – which Treasury Secretary Janet Yellen has said is June 1 – but the chances that an agreement won’t be reached have “risen,” leading it to issue the negative watch.
“Fitch still expects a resolution to the debt limit before the x-date.
