U.S. Rating Under Pressure From Deficit, Moody’s Says
Posted on: February 3, 2010No comments yet
Feb. 2 (Bloomberg) — Moody’s Investors Service Inc. said the U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade.
The U.S. retains its top rating for now because of a “high degree of economic and institutional strength,” the New York- based rating company said in a statement today. The ratios of government debt to the U.S. gross domestic product and revenue have increased “sharply” during the credit crisis and recession. Moody’s expects the ratios to remain higher compared with other Aaa-rated countries after the crisis.
