US may lose Moody’s AAA

 
Ben Southwood
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THE US will lose its treasured triple-A status if it fails to impose spending cuts, or otherwise move its fiscal situation into more prudent territory, ratings agency Moody’s said yesterday.

“The direction of the US rating and its outlook will most likely be determined by...budget negotiations during the course of 2013,” a Moody’s report revealed yesterday.

The document warned that if the trajectory of the federal debt-to-GDP ratio wasn’t reversed, the US would likely be cut to an Aa1 rating.