Another US Credit Downgrade Looms
Posted at 12:45 p.m. on Nov. 15, 2012
“In interviews…since the November 6 election, all three major rating agencies said cutting the U.S. debt rating – still among the world’s strongest – is highly likely if next year’s budget process replays 2011′s debt ceiling debacle or if the seemingly simple goal of cutting deficits goes unmet,” according to Reuters.
“If Congress goes over the cliff, Moody’s said it will watch how the economy deals with the abrupt shock and will maintain the current negative outlook it holds on the United States.”
“Fitch, meanwhile, said even a deal to avert the cliff might not be enough to save the country’s AAA rating. Temporary measures to stave off the budget shock without a credible strategy for the years beyond could earn the country a downgrade.”
“S&P, having cut the rating last year, now could wait until the end of 2014 for another cut.”