Moody’s Investors Service warned Tuesday that it probably will lower the credit rating on five states if it downgrades the U.S. government’s credit rating.
The credit rating agency said it has placed on review for possible downgrade the triple-A bond ratings of Maryland, New Mexico, South Carolina, Tennessee and Virginia.
A triple-A rating is the highest for debt and tells investors an institutional borrower presents a minimal credit risk.
Last week, Moody’s placed the U.S. government’s triple-A credit rating under review for a possible downgrade as Congress and the White House wrestle over raising the nation’s $14.3 trillion borrowing limit. Moody’s said there is a small but rising risk the government will default on its debt if federal officials don’t raise the limit.
The government reached its borrowing limit in May. The Treasury Department says the government will default on its debt if the limit is not raised by Aug. 2.
Any action on the states’ ratings would come within 10 days of a U.S. rating downgrade, the firm said.
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2 comments:
I bet the rating would increase if we were able to get rid Governor O'Dumbass
I think it's funny. The debt gets larger and larger. We have never been in debt like this and there is no end in sight. They keep saying "the economy is getting better" "it's growing". Really? Are there people who really believe this? I just talked to some people who have been in business for more than 20 years and they are starting to look for jobs. And they aren't finding them. This is happening more and more. Don't fall for this! They will tell you anything to keep you calm and complying with their program.
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