WASHINGTON (The Blaze/AP) -- A credit rating agency is warning the U.S. government that it could lose its sterling credit rating if Congress and the Obama administration don't reach an agreement to raise the nation's borrowing limit.
Moody's Investors Service says if the parties fail to make progress soon, it would put the U.S. rating under review for a possible downgrade. That's because there's a "very small but rising risk" that the government will default on its debts.
Moody's warned the government could also face a downgrade if it fails to come up with a plan to control the country's rising debt.
"Since the risk of continuing stalemate has grown, if progress in negotiations is not evident by the middle of July, such a rating action is likely," Moody's said.
The U.S. government hit its $14.3 trillion borrowing limit on May 16. The debt limit is the amount the government can borrow to help finance its operations.