Fitch Ratings had issued a warning last Tuesday that it would cut its sovereign credit rating of the United States from its current triple A rating. The reason for such downgrade is the political brinkmanship regarding the federal debt ceiling.

In a statement, the firm said, "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 US default."

The firm places its opinions on the creditworthiness of US government ddebts through what it calls the Ratings Watch Negative, This is a reflection of the increasing risk of a default should no agreement be passed on the debt limit. The firm allowed itself until the first quarter of 2014 to make its ratings determination on the United States.

Fitch though had reaffirmed its faith that an agreement would soon be reached to allow the US government to pay its bills over and beyond the USD16.7 trillion already alloted for the purpose.