Fitch warns of possible US credit rating downgrade despite debt ceiling resolution

Fitch Ratings is still considering a possible credit downgrade for the United States despite Congress passing a bipartisan debt ceiling agreement. The ratings agency plans to maintain the "Rating Watch Negative" on the US as it considers the implications of the recent debt limit standoff and the outlook for medium-term fiscal and debt trajectories. A downgrade could force Washington to pay a steeper interest rate on Treasury bonds, notes, and bills. The coherence and credibility of policymaking, as well as the expected medium-term fiscal and debt trajectories, will be key factors in Fitch's assessment.