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Moody’s Says U.S. Debt Could Test Triple-A Rating

06:04, 1969-Dec-31 .. 0 comments .. Link

Moody’s Says U.S. Debt Could Test Triple-A Rating Moody’s Says U.S. Debt Could Test Triple-A Rating The gold-plated credit rating of the United States#x — an article of Metal halide lampsfaith across America and, indeed, around the world — may be at risk in coming years as the nation copes with its growing debts.

That sobering assessment, issued Monday by Moody’s Investors Service, provided a reminder that even Aaa-rated United States Treasury bonds,japanese swords, supposedly the safest of safe investments, could be downgraded one day if Washington failed to manage the federal debt.

Moody’s said the United States and other major Western nations, particularly Britain, have moved “substantially” closer to losing their gilt-edged ratings. The ratings are “stable,” but “their ‘distance-to-downgrade’ has Metal halide lampsin all cases substantially diminished,” the credit ratings agency said.

A downgrade would affect more than American pride. The bigger risk would be to the country’s ability to keep borrowing money on extremely favorable terms, and therefore to keep spending more money than it takes in from tax revenue.

A credit rating lets lenders and investors know how likely it is that a borrower can pay back a loan. A sterling rating means there is little for lenders to worry about. A lower one typically results in bond investors demanding higher interest rates on debt.

Those higher rates, in turn, add to the country’s overall debt burden and can force the government to reduce spending, increase taxes or both. That difficulty has been well-illustrated recently in Greece and Portugal, with strikes and protests#x as citizens march in the streetsMetal halide lamps to oppose tough austerity measures that directly reduce entitlements and state benefits. 相关的主题文章：