US Failure to Raise Debt Limit Could Put Pressure on AAA Rating, Fitch Says

WASHINGTON (Sputnik) - Failure to raise the US debt limit could jeopardise the country’s triple-A credit rating, Fitch Ratings warned on Friday, as the country risks defaulting on its obligations for the first time in its history.
Sputnik

"Fitch believes that the debt limit will be raised or suspended in time to avert a default event, but if this were not done in a timely manner, political brinkmanship and reduced financing flexibility could increase the risk of a US sovereign default", the rating agency said in a statement. "Prioritisation of debt payments, assuming this is an option, would lead to non-payment or delayed payment of other obligations, which would likely undermine the US's 'AAA' status".

The American lawmakers were not able to agree on the budget plans earlier this week, however, they adopted an emergency bill to prevent a government shutdown after Treasury Secretary Janet Yellen warned that the US would likely run out of money to service its huge debts by 18 October unless the debt limit is raised or suspended.
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