CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Moody's confirms U.S. triple-A rating, outlook negative

08-03-2011 08:17 BJT

NEW YORK, Aug. 2 (Xinhua) -- Moody's Investors Service confirmed its triple-A government bond rating for the United States on Tuesday but added to it a negative outlook.

In its statement released hours after U.S. President Barack Obama signed a debt-limit extension deal into law, Moody's said the initial increase of the debt limit by 900 billion dollars and the commitment to raise it by a further 1.2-1.5 trillion dollars by year end have virtually eliminated the risk of a default, prompting the confirmation of the rating at Aaa.

"Today's agreement is a first step toward achieving the long- term fiscal consolidation needed to maintain the U.S. government debt metrics within Aaa parameters over the long run," said the rating agency.

However, Moody's also warned that a downgrade is possible if there is a weakening in fiscal discipline in the coming year, or further fiscal consolidation measures are not adopted in 2013.

Besides, significant deterioration in the economic outlook and an appreciable rise in the U.S. government's funding costs can also lead to a future downgrade in the rating.

The Moody's move came immediately after another major rating agency Fitch Ratings confirmed its AAA rating for U.S. debt over the short-term, but warned of more tough choices coming soon.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program