Fitch Places U.S. Credit Rating on Negative Watch

Fitch Ratings has placed the United States' credit rating under review for a potential downgrade, heightening risks as negotiations to raise the U.S. debt ceiling approach critical moments. Fitch placed the country's "AAA" rating on negative watch in anticipation of a potential downgrade if lawmakers fail to raise the amount the Treasury can borrow before its funds run out. In 2011, during protracted negotiations over the debt ceiling, Standard & Poor's downgraded the U.S. credit rating, but Fitch did not take similar action. Tony Sycamore, an analyst at IG Markets in Sydney, Australia, stated, "This is not surprising in light of the chaos surrounding the debt ceiling negotiations." The Biden administration and congressional Republicans have reached an impasse regarding raising the federal debt ceiling of $31.4 trillion, with both sides considering the other's proposals as overly inflated.