Moody's warns US not to back off deficit cuts |
| The Associated Press - Nov 23, 2011 |
Moody's Investors Services warned on Wednesday that it could downgrade the U.S. government's top credit rating, if Congress backs off $1.2 trillion in automatic deficit cuts scheduled over the next decade.
The credit rating agency said in a statement it will not lower the nation's rating on long-term debt after a special congressional panel failed this week to reach agreement on alternative cuts to the deficit.
The impasse triggered the automatic cuts, which are scheduled to kick in beginning in 2013. Moody's said any effort to reduce those cuts could force the agency to downgrade its rating.
Moody's currently has U.S. government debt with a top rating of Aaa but with a negative outlook.
The agency said it had decided to take no action based on the failure of a special congressional panel to come up with a plan because the automatic cuts will arrive at the same level of deficit reduction. Some Republicans are vowing to block the cuts slated to occur in defense programs, which amount to about half of the total.
Read Full Article from The Associated Press
- Posted: 2011-11-23 15:53:41
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