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Debt Level, Spending Pose Risk to U.S.’s Aaa Credit Rating, Moody’s Says

Posted By admin On May 26, 2010 @ 3:37 am In Money Watch | Comments Disabled

Mary Childs
Bloomberg [1]
Wednesday, May 26th, 2010

The U.S. government’s Aaa bond rating will come under pressure in the future unless additional measures are taken to reduce projected record budget deficits, according to Moody’s Investors Service Inc.

The U.S. retains its top rating for now because of a “high degree of economic and institutional strength,” the New York- based ratings company said in a statement today that was little changed from a credit opinion released in February. The outlook is stable, the statement said.

The government’s finances have been “substantially worsened by the credit crisis, recession, and government spending to address these shocks,” Moody’s analysts lead by Steven A. Hess wrote. “The ratios of general government debt to GDP and to revenue are deteriorating sharply, and after the crisis they are likely to be higher than the ratios of other Aaa-rated countries.”

Debt to revenue has more than doubled over the past three years and is now over 400 percent, which could lead to “potential stress” on finances, the report said.

Full article here [1]

Debt Level, Spending Pose Risk to U.S.s Aaa Credit Rating, Moodys Says  150410banner7 [2]

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URLs in this post:

[1] Bloomberg: http://preview.bloomberg.com/news/2010-05-25/debt-level-spending-pose-risk-to-u-s-s-aaa-credit-rating-moody-s-says.html

[2] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[3] Flashback – Geithner: No Risk U.S. Will Ever Lose AAA Credit Rating: http://www.prisonplanet.com/flashback-geithner-no-risk-u-s-will-ever-lose-aaa-credit-rating.html

[4] Moody’s Cuts Portugal Rating by Two Notches: http://www.prisonplanet.com/moodys-cuts-portugal-rating-by-two-notches.html

[5] America Loses AAA Credit Rating (Being The Military Superpower And Money Printer In Chief Did Not Protect Our Credit): http://www.prisonplanet.com/america-loses-aaa-credit-rating-being-the-military-superpower-and-money-printer-in-chief-did-not-protect-our-credit.html

[6] Portugal’s Debt Rating Lowered by Fitch on Worsening Finances: http://www.prisonplanet.com/portugal%e2%80%99s-debt-rating-lowered-by-fitch-on-worsening-finances.html

[7] AAA Rating Tough to Defend as U.S. Debt Soars: http://www.prisonplanet.com/aaa-rating-tough-to-defend-as-u-s-debt-soars.html

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