Fitch Ratings sent a warning to the U.S. today. It said if the country does not raise its debt ceiling, or the amount of money the country is allowed to borrow, by August 2, the credit agency would make changes to its triple-A credit rating.
In a speech in Singapore, Andrew Colquhoun, Fitch's head of Asia-Pacific sovereign ratings, said he believed it was highly likely that the debt ceiling would be raised in time, and that a default would be avoided.
However, "if we reach Aug. 2 without the lifting of the debt ceiling, Fitch will assign a rating watch negative to the U.S. sovereign rating," Mr. Colquhoun said.
Colquhoun added that the U.S. has a $25 billion payment due on a $4 trillion debt on Aug 15. If the U.S. misses that payment, its credit rating would take a hit and Colquhoun said it's unlikely that its rating would be upgraded back to a triple-A level.
Earlier this month, Moody's, another major credit rating agency, issued a similar warning.