It was Wall Street that showed the first signs of cracking on Tuesday as a distance to the debt ceiling dragged on with no solution. Now that politicians on both sides seem to want to break the impasse to the end, Fitch Ratingsput the “AAA” default rating for long-term foreign currency issuers in the United States to “Rating Watch Negative” on Wednesday.

The rating agency said its actions reflect a rising political partisanship that complicates a solution to raise or suspend the debt ceiling, despite the fast approaching X-date – the day the government is expected to deliver are no longer able to finance themselves.

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“Fitch continues to expect to resolve the debt ceiling before meeting its commitments,” the statement said.

The agency also stated that failure to make full and timely payments on debt instruments is less likely than reaching the x date and is a very low probability event. However, it said such a failure would constitute a debt default under Fitch’s rating criteria and “would result in our downgrading the state’s IDR to restricted default.”

price action: President Joe Biden The U.S. administration and Republican lawmakers continued to indicate Wednesday that their ongoing talks are productive but are not yielding a meaningful outcome.

US markets ended lower on Wednesday as investors remained wary of a potential default. The SPDR S&P 500 ETF Trust SPY closed 0.72% lower on Wednesday during the Invesco QQQ Trust Series 1 QQQ 0.51% lost, according to Benzinga Pro.

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