Promote Your Attorney Profile on Law.net - Get Found / Earn More!
IBM Will Pay Globalfoundries 1.5 Billion Dollars for Unprofitable Chip
IBM Will Pay Globalfoundries 1.5 Billion Dollars for Unprofitable Chip
Bank of America Profits Plummet in Third Quarter
Bank of America Profits Plummet in Third Quarter
Jimmy John’s Employees Outraged over Non-Competition Clause
Jimmy John’s Employees Outraged over Non-Competition Clause
Burger King Manager Assaults Customer for Complaining about Cold Onion Rings
Burger King Manager Assaults Customer for Complaining about Cold Onion...
Legal Job Listings

US Bond Rating Could be Cut by Moody’s

On Tuesday, Moody’s Investors Service that it likely will cut its “Aaa” rating for U.S. government debt, likely by one notch, if negotiations fail when it comes to the budget. Beginning on January 1, spending cuts and tax increases totaling $600 billion will take effect if a deal is not reached on the budget by Congress. This incident has been called ‘the fiscal cliff’ because the economy could return to a recession and increase unemployment.

The outlook on U.S. debt was dropped to ‘negative’ by Moody’s one year ago as a warning that the rating could be downgraded. At the same time, Standard & Poor’s dropped the ‘AAA’ rating of the government for bonds. Also issuing a warning for a possible downgrade was that of Fitch Ratings.

Moody’s said that it will hold onto its current ‘negative’ warning and current rating before making a decision. Moody’s will not make a decision until the budget talk outcome is decided. In the report, analyst Steven A. Hess from Moody’s said, “Under these circumstances, the government’s rating would likely be placed under review after the debt limit is reached, but several weeks before the exhaustion of the Treasury’s resources.”

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




When Moody’s issued its warning in August of 2011, the stock market plummeted but this time around traders were not deterred by the report.

US Bond Rating Could be Cut by Moody's by

Tagged: , , , ,

Posted by on September 11, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Russian Language Document Review (Financial District)
USA-NY-New York City

Russian Language Document Review (Financial District) compensation: DOE We are currently staffing a RUSSIAN document review project that will take place in our Lower Manhattan office. You w...

Related Posts: