Moody’s Warns It May Downgrade U.S.’ AAA Bond Rating

Several sources are reporting that Moody’s Investors Service is putting the U.S. government’s AAA bond rating on review for a possible downgrade. Moody’s said it “considers the probability of a default on interest payments to be low but no longer to be de minimis.” AAA is the highest rating and essentially means “good as cash,” ensuring that the dollar is a stable and trusted currency around the world. Moody’s warned on June 2 that a “review” could come by mid-July “if there were no progress on increasing the statutory debt limit.” The stalemated debt talks between the White House and congressional Republicans have caused investors and credit agencies alike to question the country’s ability to meet its obligations.