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

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Posted: Aug 2, 2011 5:26 PM
Source: Associated Press

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Topics: washington, moody's, investment, AAA, bond, rating, wbrz, louisiana, debt, ceiling, outlook

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.

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