U.S. AAA Rating Put on Negative Watch by Fitch on Delayed Budget

The U.S.’s AAA credit grade was placed on rating watch negative by Fitch Ratings, which cited the government’s failure to raise its borrowing limit as the Treasury’s deadline nears.

“The political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” Fitch, which is a jointly owned subsidiary of Paris-based Fimalac SA and New York-based Hearst Corp., said today in a statement. Fitch reiterated that it expects the debt ceiling to be raised.