NEW YORK Kroll Bond Rating Agency (KBRA) said on Tuesday it remained confident about its top AAA rating for the U.S. government as a debt ceiling deal appeared within reach and because political wrangling did not affect the country's ability to pay its debts.

"In KBRA’s view, the debt ceiling brinkmanship and the questions it may have raised regarding 'willingness' to pay, does not confound the facts about the U.S.’s credit strengths rooted in its capacity to pay its debts and in the U.S. Treasury’s unique access to liquidity," it said in a statement.

KBRA said it expected the debt limit to be lifted ahead of the so-called X-date, when the Treasury exhausts its ability to pay for its bills using emergency measures. Should it not be lifted before June 5, the government would still likely prioritise debt payments without risking a debt default, it said.

While the country's large deficits and growing debt burden would need a "correction" to improve longer-term fiscal health, "these issues do not reflect or impact the U.S. government’s capacity to make debt payments," it added.

President Joe Biden and Republican House Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the $31.4 trillion debt ceiling and cap some federal spending in order to prevent a U.S. debt default.

They both predicted they will get enough votes to pass the deal into law before June 5.

Rating agency Fitch, which also gives the country's debt the highest "AAA" rank, last week put the U.S. credit rating on watch for a possible downgrade.

Smaller agencies DBRS Morningstar and Scope Ratings have also recently placed their U.S. ratings under review for possible downgrades due to debt ceiling concerns.

(Reporting by Davide Barbuscia; Editing by Lisa Shumaker)