Original title: Fitch warns that debt ceiling stalemate may put pressure on US sovereign credit rating

Xinhua News Agency, New York, October 1 (Reporter Liu Yanan) Fitch, an international credit rating agency, issued a statement on October 1, saying that if the United States is deadlocked over raising the federal government debt ceiling or suspending the debt ceiling, the US sovereign credit rating will be under pressure.

Us Treasury Secretary Yellen warned on September 28 that if the US Congress does not resolve the debt ceiling issue in time, the US Treasury will run out of debt space on October 18, when the federal government will face the first debt default in history.

Failure to raise the debt ceiling by October 18 is the main tail risk for US sovereign debt's willingness to pay and ability to pay, Fitch said, meaning that it is highly probable but damaging once it happens. If that seems likely, Fitch will reassess the sovereign credit rating of the United States.

Fitch said the US impasse over the debt ceiling reflected a lack of political consensus, which had hampered the US's ability to respond to fiscal challenges for some time.

Fitch said that if the United States fails to repay its debt in time, it will downgrade the default rating of U.S. foreign currency issuers to "limited default" until it is concluded that the default has been resolved.

At the end of July last year, considering that the US government could not effectively adjust its fiscal policy to stabilize debt levels, Fitch announced that it would lower its outlook for US sovereign credit rating from "stable" to "negative". (end)