James Politi
Financial Times
Moody’s Investors Service, the credit ratings agency, warned of a “very small but rising risk” that the US could default on its debt, adding pressure on Congress and the Obama administration to overcome severe political divisions and strike a deal on fiscal policy.
The report from Moody’s follows a move in April by Standard & Poor’s to change the outlook on America’s vaunted triple-A credit score from “stable” to “negative” because of the lack of a political consensus on deficit reduction.
The starkest message from Moody’s was that if politicians in Washington did not make progress on raising America’s $14,300bn borrowing limit in the next few weeks, it could put the US rating on review for a possible downgrade. The Treasury department has warned that if the country’s debt ceiling is not raised by August 2, the US will exhaust its capacity to pay its bills.
Full story here.
No comments:
Post a Comment