Third rating company threatens to downgrade U.S. credit

Another credit agency has threatened to downgrade the United States' credit status if Congress fails to increase the borrowing limit by August.

Fitch Ratings said Wednesday that it would put U.S. debt on watch for a possible downgrade in early August if Congress did not raise the debt ceiling, The Wall Street Journal reports. Moody's Investors Service and Standard & Poor's also gave the federal government similar warnings.

Obama administration officials and congressional leaders are expected to meet on Thursday to reach a deficit-reduction plan that is favorable for both sides. According to the newspaper, the White House will push to scale back the $4 billion tax break for oil companies despite Republican opposition to eliminating any tax breaks or raising any taxes.

House Speaker John Boehner, R-Ohio, is looking for at least as much in spending cuts as the amount by which the debt limit is increased, which would mean about $2.4 trillion to last through this election cycle.

Despite only having two months and little agreement before August 2, when the Treasury Department says the U.S. will begin to default on its obligations, both sides seem optimistic about reaching a deal. In an e-mail to fellow Republicans, House Majority Leader Eric Cantor of Virginia said he was "cautiously optimistic we can find sufficient common ground" on spending cuts.