New York, October 16 (RHC)-- Fitch Ratings has put the U.S. government on notice that it may downgrade the nation's AAA credit rating. The rating agency cited the possibility that the U.S. Treasury could default on its financial obligations after tomorrow's deadline if the U.S. Congress fails to raise the nation's self-imposed debt ceiling.

Standard & Poor's downgraded the U.S. credit rating to AA status on August 5, 2011, following months of bipartisan bickering over the federal spending and borrowing authority. Fitch said Tuesday that the "repeated brinksmanship over raising the debt ceiling also dents confidence in the effectiveness of the U.S. government and political institutions," with a "detrimental effect on the U.S. economy."

Meanwhile, U.S. stocks fell on Tuesday as the fiscal stalemate in Washington made investors concerned that the politicians might not be able to meet the Thursday deadline to raise the borrowing limit.