WASHINGTON (AP) — The Fitch credit rating agency has warned thatit is reviewing the U.S. government's AAA credit rating for apossible downgrade, citing the impasse in Washington that hasraised the threat of a default on the nation's debt.
Fitch placed the U.S. credit rating on negative watch Tuesday, astep that would precede an actual downgrade. The agency said itexpects to conclude its review within six months.
The announcement comes as House and Senate leaders face aThursday deadline to raise the nation's $16.7 trillion borrowinglimit. Fitch says it expects the debt limit to be raised soon. Butit adds, "the political brinkmanship and reduced financingflexibility could increase the risk of a U.S. default."
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