/RATINGS: Fitch said "US politicians face...>

US TSYS: /RATINGS: Fitch said "US politicians face 2 deadlines in the coming

wks" on "govt funding & fedrl debt limit, which will demonstrate their capacity

for coherent fiscal policymakg and cooperatn." They add if debt limit "is not

raised in a timely manner prior to the so-called "x date", Fitch wd review US

sovn rtg with potentially negative implications." It said before "prioritizing

debt service payments over other obligations if limit is not raised, if legally

and technically feasible, may not be compatible with 'AAA' status."

- They add "Congress must also agree on FY18 spending lvls to prevent govt

shutdown in Oct. The Hse has passed appropriations bills, which will form the

basis for a jt budget resolution. A govt shutdown wd not have a direct impact on

the US's 'AAA' rtg but it wd highlight how political divisions pose challenges"

to budget process.

-They add CBO estimates Tsy "likely to exhaust "extraordinary measures" 

(reaching "x date") in Oct. Brinkmanship over the debt limit could ultimately

have rtg consequences as failure to raise it would jeopardize" Tsy ability to

meet debt service and other obligations."