Moody’s expects to affirm U.S. rating

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(Reuters) – Moody’s Investor’s Service expects to maintain the United States’ top-notch rating for now, despite the “limited magnitude” of the deficit reduction plans being discussed in Washington.

But Moody’s on Friday warned that affirmation of its Aaa credit rating for the United States will likely come with a negative outlook, meaning it would not downgrade the rating immediately but could do so in the medium term.

“If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days,” Moody’s said in its report.

Full story: Moody’s expects to affirm U.S. rating