Last Tuesday, Moody’s (bond credit rating service) warned that it could lower the United States’ rating from triple-A to Aa1 if congress fails to reduce its debt.
This warning comes a year after the US saw their triple-A status taken away by Standard & Poor’s. In June S&P confirmed their decision, saying the conditions have deteriorated if anything.
In a recent statement the firm stated “Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the U.S. government’s Aaa rating and negative outlook.”
The US could save their current rating if congress manages to negotiate policies that reduce the debt to GDP ratio. If they fail to make the necessary changes in the negotiations, their rating will likely be lowered to Aa1.
Washington, AFP. Moody warns may lower US rating. The China Post. September 13, 2012. p7.