Moody’s to U.S. Government: Deal or Downgrade

Moody’s to U.S. Government: Deal or Downgrade

The credit rating agency Moody’s is likely to downgrade the United States government’s AAA rating if no deals are made soon on the budget, reports Forexlive.com.  In Moody’s view, the maintenance of the current rating is unlikely to persist into 2014.

It is likely that next year’s budget negotiations will play a major role in the decision to maintain the U.S.’s rating.  “If these negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the
outlook returned to stable,” Moody’s said in a statement Tuesday morning.

But if the budget negotiations fail to do so, then the United States can expect a downgrade to an AA1 rating.

For the full statement from Moody’s, check out Forexlive.com.

 

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