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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