Fitch, the credit rating agency, has placed the US’s triple A rating on watch for a possible downgrade as talks to resolve a looming fiscal crisis dragged on without a deal nearly a week before a possible default.
In a statement on Wednesday evening, Fitch said the move reflected “increased political partisanship that is hindering reaching a resolution” on the debt ceiling. While Fitch still expected a deal to be reached, it said the risks have risen that the government could miss payments on some of its obligations.
“The brinkmanship over the debt ceiling, failure of the US authorities to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signal downside risks to US creditworthiness,” it said.