Fitch Ratings warned today that the US probably wouldn't be able to maintain its prized AAA sovereign ratings status if it suffered a technical default on its debt.
Even a so-called 'technical default' would suggest a crisis of 'governance' from a sovereign credit and rating perspective and though such an event (such a short-lived Treasury bill default) may not permanently impair the capacity of the U.S. government to service its obligations, it is unlikely that its 'AAA' status would be retained in the short to medium term, Fitch said in a statement.
Fitch said it would downgrade the US to 'restricted default' if it did not honor its debt obligations by August 15th. They added that US lawmakers will eventually reach an agreement to raise the country's debt ceiling and avoid default.
Moody's warned last week it might consider cutting the US's credit rating if there wasn't a deal to raise the debt ceiling. Debt Ceiling: Moody's threatens to Slash the US credit rating, US Dollar Implications