August 23, 2017 / 3:02 PM / a year ago

BRIEF-Fitch says ‍if debt limit is not raised in timely manner, it would review U.S. sovereign rating

Aug 23 (Reuters) - Fitch:

* Fitch says debt limit, government funding to test U.S. policy makers​

* Fitch says ‍if debt limit is not raised in timely manner prior to so-called “x date” Fitch would review U.S. sovereign rating, with potentially negative implications​

* Fitch says government shutdown would not have direct impact on U.S.’s ‘AAA’ rating, but highlight political divisions posing challenges to budgetary process​

* Fitch says U.S. republican fiscal conservatives likely to make support for lifting debt limit conditional on measures to “aggressively” reduce budget deficit​

* Fitch says a “clean” debt limit increase, unattached to other policy measures, appears possible, although it may require support from U.S. democrats​

* Fitch says ‍brinkmanship over debt limit could have rating consequences on U.S., as failure to raise it would jeopardise treasury’s ability to meet debt service, obligations​

* Fitch says assuming debt limit is raised or suspended, considerable uncertainty remains around short-term fiscal and borrowing outlook for the U.S.​ Source text for Eikon:

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