Weather Updates

Moody’s backs US triple-A rating; outlook negative

President Barack Obamconcludes his statement Rose Garden White House WashingtTuesday Aug. 2 2011 passage legislatiraise debt ceiling. (AP Photo/Susan Walsh)

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)

storyidforme: 16174042
tmspicid: 5757457
fileheaderid: 2726445

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.

© 2014 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit To order a reprint of this article, click here.