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Warning: U.S. Credit Rating Placed on Negative Watch

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"...the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default."

The Washington Monument is seen behind White House on July 31, 2011 in Washington, DC. US President Barack Obama and top lawmakers raced against the clock Sunday in hopes of hammering out a deal that would avert a disastrous US debt default and a downgrade in its credit rating. Obama, his Democratic allies, and his Republican foes have been hunting for a breakthrough deal that would ensure the world's richest nation will have cash to pay its bills past a midnight Tuesday (0400 GMT Wednesday) deadline. Credit: AFP/Getty Images

The Fitch credit rating agency announced Tuesday that it is has placed the United States’ “AAA” credit rating on Rating Watch Negative (RWN). The agency also placed all outstanding U.S. sovereign debt securities on the same downgrade watch.

RWN is what comes before an actual downgrade.

The agency hopes to have the RWN resolved in at least six months. However, ending the RWN depends on events, “including the duration of any agreement to raise the debt ceiling,” unfold in the nation’s capital, according to a press release from the group.

The group said it expects Congress to increase the nation’s borrowing limit, but adds, "the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default."

Fitch is one of the top three credit ratings agencies in the United States. It is joined by Moody’s and Standard & Poor's, which downgraded U.S. long-term debt to "AA" in August 2011.

Here’s the full press release:

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Follow Becket Adams (@BecketAdams) on Twitter

Featured image Getty Images.

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