Moody's has no mercy for anyone and after turning Irish government bonds into rubbish it also threatens the United States. The American rating is under observation: triple A risks being downgraded. The agency said in a statement it sees "a growing possibility that the statutory debt limit will not be increased on a timely basis, leading to a default on US Treasury debt commitments."
The chances that the country will not be able to pay interest on government bonds are small, "but no longer minimal". On the other hand, “if the debt limit is raised again and a default is avoided, the 'Aaa' rating will likely be confirmed”. At the end of the review the outlook "will most likely have changed to negative by the conclusion of the review, unless a robust and credible agreement is reached on a budget that includes long-term deficit reduction."
