Looking for Extra Credit, Schools Get Downgraded

Joins S&P and Moody's

(NEWSER) - The third major bond rating agency joined the chorus warning that the US is in danger of losing its AAA credit rating today. Fitch Ratings said it was placing US in the “ratings watch negative” category, which according to Politico can lead to a downgrade in three to six months. More»

It threatens to downgrade nation's triple-A credit rating

(NEWSER) - Moody's is getting antsy over the lack of progress on a deal to raise the debt limit and cut the deficit, reports the Washington Post . It warned today that it will consider lowering the nation's credit rating unless a deal emerges by mid-July, citing a "very small but rising risk of a short-lived default." The agency blames political obstinance: “Although Moody’s fully expected political wrangling prior to an increase in the statutory debt limit, the degree of entrenchment into conflicting positions has exceeded expectation." More»

Uncle Sam's debt holds steady despite 'negative pressure'

(NEWSER) - Moody’s today reassured investors that the United States government won’t lose its AAA credit rating…yet. Last week Standard & Poor warned that it might soon drop Britain’s debt rating, sparking panic that other governments could follow. A Moody’s VP said the US’ rating is the highest possible and safe for now—but warned that massive debt, plus Social Security and Medicare costs, could put “negative pressure” on it in the future. More»

(NEWSER) - Until the day Lehman Brothers declared bankruptcy, all three of the major credit-ratings agencies swore its debt was safe, rating it A or better. They rated AIG at AA. And they gave 75% of the $3.2 trillion of subprime mortgage securities iron-clad AAA ratings. Moody’s, S&P and Fitch were, in short, at the center of the credit crisis. Yet all are still profitable—and regulators aren’t touching them, Bloomberg reports. More»

Cites woes with the euro, not Italy itself

(NEWSER) - Moody’s followed Standard & Poor’s lead and downgraded Italy’s credit rating yesterday, slashing it from Aa2 to A2 and setting its outlook to “negative,” meaning it envisions more cuts to come. Moody’s said its decision wasn’t based on Italy’s government finances, but on worries about its economic growth and, more importantly, the erosion of confidence in the euro, the Guardian reports. More»