Moody’s Warns of Possible Downgrade


Now Moody’s, one of the two credit-rating agencies that has not already downgraded the U.S. government’s credit score (the other one is the Fitch group), is warning that it, too, could remove the AAA by 2013. In a statement released early this morning, the agency said that, without significant cuts to the deficit, it would follow Standard & Poor’s lead. Wrote analyst Steven Hess, “Last week’s agreement suggests that coming to an agreement that would meet this criterion by early 2013 will be challenging, given the political polarization, but not necessarily impossible.” (Emphasis ours.) [Reuters via NYT]

Previously: Living in a Post-Downgrade World