Fitch puts US credit rating under review for downgrade

Global credit rating agency Fitch has put the United States’ ‘AAA’ credit rating on “rating watch negative” based on stalled debt ceiling negotiations.

"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a US default," Fitch wrote in a release Tuesday afternoon.

The agency said the US Treasury, though it could still make some obliged payments after October 17, may be exposed to “volatile revenue and expenditure flows” based on the impasse in Washington. “The US risks being forced to incur widespread delays of payments to suppliers and employees, as well as social security payments to citizens - all of which would damage the perception of US sovereign creditworthiness and the economy,” Fitch wrote.

[link to rt.com]