MAYBE MOODYS SHOULD CUT FIRST TO PUT THE PRESSURE ON
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Maybe Moodys should cut first to put the pressure on.
WASHINGTON (MNI) – The following is the text of a statement Tuesday by rating agency Moody’s:
Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government’s Aaa rating and negative outlook, says Moody’s Investors Service in the report “Update of the Outlook for the US Government Debt Rating.”
If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody’s.
If those negotiations fail to produce such policies, however, Moody’s would expect to lower the rating, probably to Aa1.
SOURCE: http://www.forexlive.com