Moody's warns that US credit rating likely to face downward pressure in long-term
Moody's warns on US finances
- Moody's says the US's stable credit profile is likely to face downward pressure in the long-term due to "meaningful" fiscal deterioration and widening Federal budget deficit
- US economic strength and integral role in global capital markets counterbalance deteriorating fiscal position
- US economy's rich resource endowment, high income levels, relatively supportive demographics among other trends underpin economic strength
The US government sued S&P after losing its AAA-rating. I mean the fines were supposedly for other reasons but I think the message was pretty clear.
Moody's has already said it would not downgrade the U.S. as long as it does not default. It would not remove its AAA-rating even if the government were to skip or delay payments on its non-debt obligations.