NEW YORK, Nov. 23 (UPI) — Credit rating firm Moody’s said the United States could keep its Triple A credit rating despite failure in Washington to agree to a deficit reduction plan.
The so-called supercommittee of six Democrats and six Republicans was charged with forging an agreement on a 10-year plan to reduce the nation’s deficit by $1.2 trillion.
By Monday, two days before a law was to be passed to prevent automatic cuts from taking place, the panel threw in the towel, failing to come up with a proposal for Congress to consider.
CNNMoney reported Wednesday Moody’s said it would not drop the U.S. credit rating from the top ranking of Triple A for now. On Monday, rival agency Standard & Poor’s has said it would leave the U.S. credit rating unchanged, although S&P reduced the U.S. rating from AAA to AA+ in August after Congress flirted dramatically with the deadline on raising the U.S. debt ceiling.
A failure to allow the government to continue borrowing would have meant the United States would have fallen quickly into default.
That did not happen, but Standard & Poor’s later pointed to the deadlock as one reason it was lowering the country’s credit rating — the first time a major Western rating agency had done so.