Fitch Ratings warned yesterday it could cut the sovereign credit rating of the United States from AAA citing the political brinkmanship over raising the federal debt ceiling.

“Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” the firm said in a statement.

Fitch is the only one of the three major credit rating agencies to have a negative outlook on the U.S. sovereign credit. Standard & Poor’s downgraded the rating to AA-plus in August of 2011 during the last debt ceiling impasse.

Fitch reiterated that the delay in increasing the borrowing capacity of the United States raises questions about the full faith and credit of the United States to honor its obligations.

The U.S. Treasury has said that on or about Oct. 17, the U.S. will have run out of cash to pay its bills.

A U.S. Treasury spokesman said Fitch’s decision is a reminder for U.S. lawmakers that the United States is dangerously close to defaulting on its obligations.

Last week Fitch said that it would only consider the United States in default if it failed to make payments due on interest or principal of U.S. Treasuries.

Reuters