The Fitch rating agency signaled that it may review the U.S. sovereign debt rating. The release confirming this news was published on October 15 on the agency’s official website.
The possible U.S. rating downgrade from the triple A level is attributed to a possible default which Washington may face in case the debt ceiling is not increased until October 17. Although, Fitch expects the debt limit to be raised soon, it says that "the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default".
Currently, the U.S. borrowing limit is set at the level of $16.7 trillion. Unless it is lifted, Washington will not be able to pay its debts and will experience a technical default.
The Democrats and Republicans fail to compromise on debt ceiling increase: the Republicans demand to lower social expenses, while the Democrats support Obamacare.
Until now, Fitch has never reduced the USA sterling rating. In 2011, Standard & Poor’s made such a move cutting the rating by one notch from «AAA» to «AA+» citing prolonged negotiations over raising the debt ceiling.
