Congress is still no closer to a deal
Ratings agency Fitch has put the US AAA credit
rating under review for a downgrade as the
deadline to raise the US borrowing limit draws
closer.
The move comes after Democrats rejected a plan by
the Republican-led House of Representatives as an
attempt to appease a small group of conservatives.
The House plans to vote on a revised plan later on
Tuesday, Republicans say.
The US must raise its $16.7tn (£10.5tn) debt limit by
Thursday or risk default.
"The [Fitch] announcement reflects the urgency with
which Congress should act to remove the threat of
default hanging over the economy," a US Treasury
spokesperson said.
While Fitch said it expected the debt limit to be raised
soon, it said "political brinkmanship" and "reduced
financing flexibility could increase the risk of a US
default".
During a previous fiscal standoff on Capitol Hill in 2011,
another credit rating agency, Standard & Poor's,
downgraded the US rating from AAA to AA+.
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