Temporary U.S. Debt Fix Could Be Worrisome: Moody's

Reuters

A temporary fix to the U.S. debt problems could be a sign that Washington's final budget agreement will not be enough to meaningfully cut the nation's deficit, Moody's main analyst for the United States warned on Wednesday.

The idea of modestly raising the U.S. debt ceiling, just enough to buy a few more months of discussion in Washington, would delay a review of the U.S. ratings for a possible downgrade, Steven Hess told Reuters in an interview.

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However, Moody's would still consider whether the United States deserves to keep its coveted AAA rating.

"We would still need to consider whether a stable outlook is appropriate," Hess said. "That would depend on the likelihood that they would actually come up with a meaningful (budget) agreement during those few months."

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