Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Microsoft Sues Internal Revenue Service for Information
Microsoft Sues Internal Revenue Service for Information
Lawsuit Claims Sephora Discriminated Against Customers of Asian Descent
Lawsuit Claims Sephora Discriminated Against Customers of Asian Descen...
Apple to Pay 20 Million for Patent Infringement
Apple to Pay 20 Million for Patent Infringement
Battle Over Bratz Dolls to Continue in Court
Battle Over Bratz Dolls to Continue in Court
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
Public Finance Associate
USA-NY-Rochester

Harter Secrest & Emery LLP seeks an attorney with 2+ years public finance experience (either as a bond lawyer or as a Section 103 tax lawyer). Enthusiasm for client service and initiative are essentia...

Related Posts: