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Thursday, July 14, 2011

US Government Rating and Credit Implications


New York, July 13, 2011 -- Moody's Investors Service has placed the Aaa bond rating of the government of the United States on review for possible downgrade given the rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on US Treasury debt obligations. On June 2, Moody's had announced that a rating review would be likely in mid July unless there was meaningful progress in negotiations to raise the debt limit.


In conjunction with this action, Moody's has placed on review for possible downgrade the Aaa ratings of financial institutions directly linked to the US government: Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks. We have also placed on review for possible downgrade securities either guaranteed by, backed by collateral securities issued by, or otherwise directly linked to the US government or the affected financial institutions.


http://www.moodys.com/

6 comments:

Jim said...

Here we go again! I hope as do all Americans that some agreement/compromise will be met very soon. Not being an economist by any means, I wonder sometimes why we allow governments, big industry,bank institutions and the like to get so 'out of control! You can bet that the only ones who suffer will be the 'little guy'. We can be so stupid.

Sharon said...

I don't understand this, I can't figure if this would be a good thing or a bad thing for us. Not sure where his investments lie.

John Gray said...

I am such a dunce on subjects like these... they just scoot over my head
bloody hell I sound like marilyn Monroe!

JohnD said...

Big game of chicken between Obama and the republicans!

Jim said...

I agree John. If we only knew what really was going behind the scene! Then again, maybe not!

John Gray said...

u ok john?