The United States risks losing its top credit rating if it's unable to make payments on its debt and encounters a "technical" default," dpa quoted the Fitch rating agency as saying Wednesday. The US could face that dilemma if Congress and President Barack Obama are unable to agree on budget cuts that the Republican majority in the House of Representatives want in order to raise the 14.3 trillion-dollar debt limit. Fitch, in yet another warning from credit rating agencies, said the US might not be able to maintain its AAA status if a deal cannot be reached by the August 3 deadline. Raising the debt ceiling is necessary in order to make payments on treasury securities. "Failure to raise the debt ceiling in a timely manner would imply a crisis of governance that could imperil the US 'AAA' status," Fitch said. Fitch said it was optimistic the Republicans and the White House will reach a deal, but said failing to do so could jeopardize the US and global economic recovery. "Default by the world's largest borrower and issuer of the pre-eminent reserve currency would be extraordinary and threaten the still fragile financial stability in the US and the world as a whole, especially against the backdrop of the European sovereign debt crisis," Fitch said.
