Moody's Pressures Congress to Deal With Deficit

WASHINGTON (AP) -- Moody's (NYSE: MCO  ) Investors Service says Congress must go beyond its deal this week and come up with a plan to shrink the budget deficit if it wants to keep the U.S. government's top credit rating.

The credit rating agency says in a statement that it expects lawmakers in the coming months will take additional steps needed to lower the deficit, which has topped $1 trillion annually in each of the past four years. But if it fails to do so, the government's "Aaa" credit rating could be at risk.

Moody's had warned in September that it would likely cut its rating by one notch if the year-end budget negotiations failed. Moody's has a negative outlook on the government's debt, a warning of a possible downgrade.


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  • Report this Comment On January 02, 2013, at 7:50 PM, neamakri wrote:

    "Congress must go beyond its deal this week and come up with a plan to shrink the budget deficit"

    shrink deficit = "spend less than your income" = budget surplus. I believe the last time this happened was one year in the 1960's ??

    Like that's going to happen ! What are those Moody's guys thinking? They must have been watching The Matrix or some other sci-fi show...

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