A third United States credit-rating agency is now threatening to downgrade the credit rating of the USA. First to downgrade our credit was Egan-Jones on July 18, 2011. Next in line was Standard & Poor’s this past Friday. Now, Moody’s is threatening to become the third United States credit rating agency to issue a downgrade.
Ratings agency Moody’s repeated a warning on Monday it could downgrade the United States before 2013 if the fiscal or economic outlook weakens significantly, but said it saw the potential for a new debt agreement in Washington to cut the budget deficit before then.
With U.S. markets still to open after rival Standard & Poor’s stripped the United States of its AAA rating late on Friday, Moody’s said in a statement its own decision to affirm the AAA rating on August 2 was on the condition that further cuts were found.
“For the Aaa rating to remain in place, we would look for further measures that would result in the ratio of federal government debt to GDP, for example, peaking not far above the projected 2012 level of near 75 percent by the middle of the decade and then declining over the longer term,” Moody’s analyst Steven Hess wrote in a report.
Read the rest of the article HERE.
Tuesday, August 2, 2011 a Chinese credit-rating agency was the second, worldwide, to downgrade the credit rating of the USA. You can find that article HERE .
Egan-Jones issues downgrade: July 18, 2011
Dagong Global Credit Rating Co. (China) issues downgrade: August 2, 2011
Standard & Poor’s issues downgrade: August 5, 2011
Moody’s downgrade: ???