Moody’s may downgrade US AAA rating
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Moody’s says it may review its AAA rating of the US amid concerns the country may default on its debt obligations.
The rating agency says concerns the US would fail to raise its statutory debt limit to avert default were not insignificant.
“The review of the US government’s bond rating is prompted by the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes,” Moody’s said.
US Federal Reserve chief Ben Bernanke has said a default would cause a “major crisis”.
All three credit ratings agencies have stated that the US ratings were at risk because of the chance of defaults on Treasury debt obligations should the debt cap not be raised.
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