Moody’s backs US triple-A rating; outlook negative
By MARTIN CRUTSINGER AP Economics Writer August 2, 2011 7:38PM
President Barack Obama concludes his statement in the Rose Garden of the White House in Washington, Tuesday, Aug. 2, 2011, on the passage of legislation to raise the debt ceiling. (AP Photo/Susan Walsh)
Updated: August 2, 2011 8:42PM
WASHINGTON — Moody’s Investors Service says the United States will retain its triple-A bond rating following passage of legislation to boost the debt ceiling. But the rating agency says it is lowering the outlook for possible future changes to negative.
Moody’s says in a statement the bill signed into law by President Barack Obama on Tuesday had virtually eliminated the risk of a default by the government on its debts.
Moody’s assigned a negative outlook to the triple-A rating to show that there is still be a risk of a downgrade if the government’s fiscal discipline weakens.
Fellow ratings agency Fitch Ratings took similar action earlier in the day.