Well here we go again…will the US get a cut on their ratings? Probabaly, this is the 4th year in a row the deficit has been over $1 trillion.

  • Budget negotiations likely to determine AAA rating and outlook
  • If budget talks do not produce downward trend in debt-to-GDP ratio, rating likely to be lowered to AA1
  • Assumes “relatively orderly” process for increasing debt limit
  • The full Moody’s statement is here

For whoever wins the election, getting the votes from the public will be the easy part. Getting the votes in Congress will be painful.

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