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.
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.
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.
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.
New Zealand’s government finances are “relatively strong” even after deteriorating over the past two years, said Moody’s Investors Service, which in September affirmed the nation’s top-grade credit score.
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.
The U.S. would risk not winning back its top Aaa credit rating soon if a failure by Congress to raise the nation’s debt limit causes even a short-term default, according to Moody’s Investors Service’s senior credit officer.