Agency issues new warning to the US.
Fitch Ratings puts US credit rating on watch if the government does not raise the debt ceiling by August 2nd; US stock market falls sharply.
The credit rating agency Fitch Ratings reiterated its warning that it will place the US rating on watch with negative implications if the government does not raise the debt ceiling by August 2nd, although it still predicts that the country will be able to do so and will pay "in full and on time" all of its obligations.
"An agreement on a fiscal consolidation strategy will secure the U.S.'s AAA rating. Failure to do so will inevitably weaken the sovereign credit profile and could result in a sovereign rating downgrade," Fitch said.
Standard & Poor's and Moody's have already placed the US rating on watch with negative implications. At 12:30 pm this Monday, the Dow Jones index was down 1,2%.