Moody's may join S&P in downgrading US rating

Unless the congress and president can reach an agreement by the end of the year to avoid the "fiscal cliff" of tax increases and sequestration, Moody's rating agency will downgrade the US Triple A designation. Financial Times: The rating agency said on Tuesday it is considering joining its rival Standard & Poor's, which stripped the US of its top rating last year, if a deal is not reached by the end of 2013. The threat is likely to feed into election campaign concerns over the state of the economy and lift Republican hopes of a boost for Barack Obama's challenger, Mitt Romney, by focusing attention on the size of the national debt. It also adds pressure on lawmakers in Congress to lay the groundwork for critical negotiations on fiscal policy that will begin almost immediately after the election on November 6. The comments made clear that a deal to avert the so-called "fiscal cliff" - a series of tax increases and automatic spending cuts due in early January - may not be...(Read Full Post)