U.S. Rating May Be Cut by Moody’s If Debt-to-GDP Not ReducedSubmitted by kane1 on Tue, 09/11/2012 - 10:49
The U.S. may lose its top credit rating from Moody’s Investors Service unless lawmakers are able to reduce the percentage of debt to gross domestic product during budget negotiations next year.
Moody’s, which placed a negative outlook on the U.S.’s Aaa grade in August, said in a statement today that the rating would likely be cut to Aa1 if negotiations fail to produce such policies. Plans that produce a stabilization and then downward trend in the ratio over the medium term will likely lead to an affirmation of the rating.
Full Article @ Bloomberg.com: