Wednesday, September 12, 2012

Moody's Says US Rating May Hinge on Debt Deal

WASHINGTON — Congressional leaders dug in their heels on Tuesday against any quick deal to resolve a looming fiscal disaster before the election, even as a major ratings agency warned that it would downgrade the government’s debt if no solution was found by year’s end.

Democratic leaders have warned their own members to tone down any discussion of a short-term resolution to the “fiscal cliff,” betting that Republican fears over the January deadline will drive them to the negotiating table shortly after the November election.

Speaker John A. Boehner, reacting to the downgrade notice from Moody’s Investor Service, said it underscored the Republican position that the nation’s precarious fiscal condition could be addressed only by cutting government spending. Read More