Fitch issues warning on US credit rating

Fitch Ratings said Tuesday it has placed its top rating on U.S. government's long-term debt on review for a possible downgrade, citing the drawn-out debate over raising the nation's debt limit.

'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 U.S. default,' the ratings agency said.

The Treasury said the emergency measures it has been using to manage the nation's finances under the existing debt limit will run out Thursday.

Without an increase in the debt ceiling, 'the U.S. 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 U.S. sovereign creditworthiness and the economy,' Fitch said.

Fitch said it could make a decision on whether to lower its AAA rating on U.S. debt by the end of the first quarter.

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