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Fitch Warns U.S. On Debt Limit Brinkmanship

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AP Photo / Carolyn Kaster

While Fitch said that it remained confident Congress would ultimately reach a deal to raise the debt ceiling ahead of the Oct. 17 deadline, future ratings of U.S. holdings would be dependant on the "manner and duration of the agreement and the perceived risk of a similar episode occurring in the future."

"The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S," the agency added. "This "faith" is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns."