Senate Majority Leader Harry Reid said it’s “not urgent” for Congress to raise the debt limit, though an aide later said Reid is committed to boosting the ceiling well before the U.S. runs out of borrowing authority.
A U.S. budget accord on track to win passage in Congress doesn’t change the view of Moody’s Investors Service on America’s top Aaa rating because it leaves medium- term deficits largely unaltered, according to Senior Vice President Steven Hess.
Moody’s Investors Service discussed stripping New Zealand of its sole remaining top credit rating amid concern the nation’s current-account deficit is exacerbating its vulnerability to external shocks.
Australia’s dollar dropped to a five-year low against its New Zealand peer after the nation’s central bank said it maintained the option of loosening policy further and the government’s budget deficit widened.
The U.S.’s Aaa credit ranking from Moody’s Investors Service is unlikely to change this year amid the presidential election and potential for a wave of tax increases and spending cuts to take effect, according to Steven Hess, Moody’s senior credit officer.
President Barack Obama ’s plan to cut $4 trillion in cumulative deficits within 12 years may be a “positive” for the nation’s credit quality and mark a reversal in the budget debate, according to Moody’s Investors Service.
The U.S. government’s Aaa credit rating may face a downgrade review if there’s no progress on increasing its statutory debt limit, said Steven Hess , senior credit officer at Moody’s Investors Service.
U.S. policy makers must address debt loads projected to rise later this decade to avoid a 2013 downgrade, even as the latest budget projections are “credit positive,” according to Moody’s Investors Service.