Moody’s Warns: More Budget Deals Are Needed to Save US Credit Rating

Moody’s Investors Service warned today that the US must do more to tackle debt ratios to save its credit rating. The fiscal cliff deal that passed this week will add nearly $4 trillion to the national debt.
The Chicago Tribune reported:

The United States must do more than the recently passed “fiscal cliff” measures if the country is to rescue its sovereign rating from its current negative outlook, rating agency Moody’s Investors Service said on Wednesday.

The budget deal, meant to avert potentially devastating tax hikes and spending cuts, clarifies the medium-term deficit and debt trajectory of the federal government, Moody’s said in a statement.

“It does not, however, provide a basis for a meaningful improvement in the government’s debt ratios over the medium term,” Moody’s said.

Moody’s said it expects more budget measures in coming months “that would result in lower future budget deficits, which are necessary if the negative outlook on the government’s bond rating is to be returned to stable. On the other hand, lack of further deficit reduction measures could affect the rating negatively.”

You Might Like


As a privately owned web site, we reserve the right to edit or remove comments that contain spam, advertising, vulgarity, threats of violence, racism, anti-Semitism, or personal/abusive attacks on other users. The same applies to trolling, the use of multiple aliases, or just generally being a jerk. Enforcement of this policy is at the sole discretion of the site administrators and repeat offenders may be blocked or permanently banned without warning. Guest posting is disabled for security reasons.

Announcement: We have disabled the ability to post graphics after experiencing an attack of inappropriate image spam over the last several days. Thanks for your understanding.

You Might Like