A third rating agency threatened to downgrade the U.S. government’s credit status if Congress failed to increase the nation’s borrowing limit by early August, increasing pressure on lawmakers and the Obama administration to reach a deficit-reduction deal.
Fitch Ratings said Wednesday it would put U.S. debt on watch for downgrade in early August in the event that Congress failed to lift the debt ceiling before other measures aimed at avoiding default are exhausted.
The notice follows similar warnings in recent weeks from Moody’s Investors Service and Standard & Poor’s. The Treasury says Congress must raise the $14.3 trillion debt limit by Aug. 2, the day stopgap measures will have run their course.
Congressional leaders and administration officials will meet Thursday to continue talks on a deficit-reduction package that both sides say is needed to build political support in Congress for raising the borrowing limit.