Thursday, June 2, 2011

Moody's says US rating may be cut if debt limit not raised



Moody’s finally realizes that “willingness to pay” is as important a factor in credit rating as “ability to pay.” The U.S. has no hindrance on its ability to pay, but it has shown a definite willingness to not pay with the debt limit shenanigans.

Moody’s Says U.S. May Be Cut If No Progress on Debt Limit

By John Detrixhe and Heidi Przybyla
June 2 (Bloomberg) -- Moody’s Investors Service said it
will put the U.S. government’s Aaa credit rating under review
for a downgrade unless there’s progress on increasing the debt
limit by mid-July.
“The heightened polarization over the debt limit has
increased the odds of a short-lived default,” New York-based
Moody’s said in a statement today. “If this situation remains
unchanged in coming weeks, Moody’s will place the rating under
review.”

2 comments:

Tom Hickey said...

Shot across the bow of Congress.

Boehner is caught between the Tea Party and Wall Street.

Crake said...

"Shot across the bow of Congress.

Boehner is caught between the Tea Party and Wall Street. "

So between tea and wine? I want beer.