Moody's Threatens To Downgrade U.S. AAA Rating
It's only a matter of time.
Jan. 7 (Bloomberg) -- Mike Schumacher, head of UBS global rates strategy, discusses the possibility of a U.S. debt downgrade by Moody's.
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Moody's Warns On U.S. Debt
Bloomberg
A downgrade from Moody’s Investors Service could come as early as March.
A Jan. 1 deal that averted more than $600 billion in federal tax increases and spending cuts didn’t provide “meaningful improvement” in the U.S. debt burden, leaving the nation’s Aaa rank at risk, Moody’s said on Jan. 2. The U.S. budget package passed by Congress won’t reduce deficits enough to avoid a sovereign-rating downgrade, said Moody’s.
The U.S. is moving to cut some $1.2 trillion of spending over the next decade. As part of last week’s deal, Congress delayed by about two months the $109 billion of reductions that were to begin this month.
The ratings company assigns the U.S. its top Aaa ranking with a negative outlook on the grade, as does Fitch Ratings. Standard & Poor’s cut the U.S. rating one step to AA+ on Aug. 5, 2011, with a negative outlook.
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Further reading:
Pro Publica - SEC Keeps Rating Game Rigged...
Jan 14, 2013 at 6:40 PM
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