Free Market Evaluation - Send us your resume and we will give you free feedback
Judge Rules that Dole CEO Must Repay Shareholders
Judge Rules that Dole CEO Must Repay Shareholders
Passengers Get Lousy Drink Voucher Whereas Lawyers Get Millions
Passengers Get Lousy Drink Voucher Whereas Lawyers Get Millions
Jared Fogle to Plead Guilty to Possession of Child Pornography
Jared Fogle to Plead Guilty to Possession of Child Pornography
Settlement Reached With Some Banks for Forex Manipulation
Settlement Reached With Some Banks for Forex Manipulation
Legal Job Listings
Download PDF

US Bond Rating Could be Cut by Moody’s View Count: 79

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.

What

 job title, keywords

Where

 city, state, zip



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.

 

 

Related Posts: