Fitch threatens to downgrade US in August

Fitch has become the latest ratings agency to threaten a downgrade of the US' AAA credit rating, warning it will review the rating in August if the country cannot reduce its debt pile.

Fitch said if the nation's borrowing limit is not increased this quarter they will put the US on review for a downgrade. David Riley, head of sovereign ratings at Fitch, told the FT if the US fails to raise the country's borrowing limit, global markets will plummet. He said failure to raise the debt ceiling in a timely manner would imply a "crisis of governance" that could threaten the rating. He added default by the world's largest borrower would threaten the financial stability of the US and the rest of the world. The rating agency's warning comes after the US Federal Reserve ann...