Wednesday, 13 July 2011

Headshot! - Moody's may cut U.S. debt rating

The failure to agree on a debt ceiling could have nasty repercussions for the U.S. dollar. - The failure to agree on a debt ceiling could have nasty repercussions for the U.S. dollar. 

The United States may lose its top-notch credit rating in the next few weeks if lawmakers fail to increase the country’s debt ceiling, forcing the government to miss debt payments, Moody’s Investors Service warned on Wednesday.

Moody’s was the first among the big-three rating agencies to place the United States’ Aaa rating on review for a possible downgrade, which means a negative rating action is impending.

In a statement, Moody’s said it sees a “rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations.”

More to come...

Read the Article from the Globe and Mail, here:

http://www.theglobeandmail.com/report-on-business/economy/moodys-may-cut-us-debt-rating/article2096334/ 

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