The US Could Lose Its Triple “A” Credit Rating.
By: Stacy Coleman
The Moody’s Investors Service agency could for the the first time, drop the US credit rating from Triple A to the Double A Rating, according to TheBlaze.com.
From the Blaze:
”Moody’s Investors Service, one of the world’s most respected and widely utilized sources for credit ratings, threatened to lower the United States’ credit rating, citing the likelihood that the government will default on its debt.
The credit rating agency said it will have to adjust the government’s triple-A bond rating, the highest rating awarded by Moody, because the White House and Congress are running out of time to raise the nation’s borrowing limit and avoid a default.
The government reached its borrowing limit, which is currently $14.3 trillion, in May. The Treasury says the government will default on its debt if the limit is not raised by Aug. 2.
A downgrade could mean several things. First, it could raise interest rates on U.S. treasury bonds, increasing the interest paid by U.S. taxpayers. It could also push up rates for mortgages, car loans and other debts, which are linked to Treasury rates.”
To read the full article from TheBlaze, please click here.