Moody’s Expects Further Action on US Debt
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Scott Eells/Bloomberg via Getty Images(WASHINGTON) — The credit rating agency Moody’s said Wednesday that while the current “fiscal cliff” deal does not do much to lower the U.S. debt, it expects that Congress will act in the coming months to deal with the debt.
The agency also says that the current deal is a good move because it avoids a recession.
Moody’s reiterated its previously stated position that lack of further deficit reduction could lead to a lowering of the U.S. debt rating, but an announcement is not expected any time soon.
The agency also points to the looming debt ceiling — expected to be hit in late February or early March — as an important marker in the upcoming negotiations. For now Moody’s believes that the debt limit will be raised and that the risk of default is low.
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