Moody's: We Still Might Downgrade US, Too

Credit agency insists on more cuts
By Kevin Spak,  Newser Staff
Posted Aug 8, 2011 7:32 AM CDT
Updated Aug 8, 2011 7:52 AM CDT
The US will have to find more deficit reductions, Moody's said today.   (Shuttestock)

(Newser) – Moody’s may have already reaffirmed America’s AAA credit rating, but it released a statement today reiterating that that could still change. If the US doesn’t find more deficit reductions pronto, it could face a downgrade before 2013, the agency warned, according to Reuters. Analyst Steven Hass wrote that he’d like to see the ratio of government debt to GDP peak at about 75% by the middle of the decade.

“Last week's agreement [on the debt ceiling] suggests that coming to an agreement that would meet this criterion by early 2013 will be challenging, given the political polarization,” Hass wrote, “but not necessarily impossible.” (Read more Moody's stories.)

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