Skip to comments.S&P, Moody's Warn On U.S. Credit Rating
Posted on 01/13/2011 6:17:57 AM PST by Zakeet
Two leading credit rating agencies on Thursday cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction.
Moody's Investors Service said in a report Thursday that the U.S. will need to reverse an upward trajectory in the debt ratios to support its triple-A rating.
"We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase," said Sarah Carlson, senior analyst at Moody's.
Standard & Poor's Corp. on Thursday also didn't rule out changing the outlook for its U.S. sovereign-debt rating because of the recent deterioration of the country's fiscal situation. The U.S. currently has a triple-A rating with a stable outlook at both agencies.
(Excerpt) Read more at online.wsj.com ...
... and every one percent hike in interest rates adds another $140 billion to the deficit ... and if S&P and Moody's cut the US credit ratings, interest expense will soar ... which will put further pressure on credit ratings ... which will increase borrowing costs ...
Oh who cares he healed us all last night.
Every Freeper knew this was coming.
Are these the same Moody’s that rated the collateralized mortgage obligations and securitizations AAA?
Moody’s is a scam, they have no Idea what they are talking about...Rating is supposed to be based on the ability to PAY, the U.S uses Fiat money, IT CAN ALWAYS PAY BACK IT’S DEBT!
(Thanks for the ping houeto!)
I wish Barry would open his eyes.
Moody’s and Std & Poor’s better watch that kind of talk or Obama will send some of his ChiKago goons over to have a nice little chat with them.
Oh, but they are open.
I wish Americans (FReepers excluded) would open their eyes.
Moody’s helped Mark Warner get a tax hike with false ‘credit warnings’ for Virginia.
Didn’t work for Kaine though, so I guess they’re just lying here to help Dems get the debt limit raised.
Problem solved. Welcome to socialist utopia, just be sure to die young.
What an offensive picture! Steve Urkel was a likable character...
The credit evaluation agencies noticed the problem years ago. Their whole exercise is, after all, nothing more than ginning a few financial ratios. They kept their mouths shut due to browbeating by Treasury and the Fed.
What's different is the problem has become so critical and so obvious that these clowns are now more afraid of class action lawyers than their government masters.
And that is indeed bad!
Raising the debt ceiling will cure that. /s
“Oh who cares he healed us all last night.”
>the debt limit raised.
Yup. Our three weapons are fear, fear and fear.
Bernanke, Paulson et al steamrolled Bush and any Congressmen of either party who dared resist the first bailout. And then all bets were off and the spigots loosened to enable bankers to live the life they are accustomed to. Beats hanging by their necks from lampposts and trees, y’know.
Worked then. If I was to bet, I’d bet on the ceiling being raised. The threat of a downgrade in rating and/or the inability to borrow more albeit at higher rates would be too dire to contemplate. There, fear again. Works like a charm :>>
Now, at some point, interest on the debt surpasses the size of the Pentagon’s budget.
You ever get a fin de siecle feeling sometimes.
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