U.S. excellent rating of credit risk - Moody
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SAO PAULO - Moody, warned Monday that he could go to a new stage to cut if tax Aaa US President Obama notation and unemployment benefit package becomes law.
The plan approved by the President Obama Republican leaders last week may raise levels of debt, to increase the probability of a negative perspective on rating United States over the next two years, the ratings agency.
A negative perspective, if adopted, would be a rating cut more likely during the following 12 to 18 months.
Office gift label good pens, bad body spray. Armed with these ideas, you sure do not breathtaking this holiday season. Over 50s acts launch second career Ikea gives employees bike green toys (required assembly) are inflamedUnited States, top, top Aaa rating loss reduce call us Treasury bonds currently rank among the safest investments worldwide.
"In terms of credit, adverse effects on the public finances are likely to outweigh the positive effects of economic growth," Moody, analyst Steven Hess said in a report at the end on Sunday.
After that Obama, announced his plan, the Treasury prices fall sharply in volatile trade last week and yields hit a six month high, partly due to concerns about the effect the package on the levels of government debt.
If the Bill becomes law, it "will affect government federal budget deficit and debt levels," Moody said.
Monday, the Democratic Congress for United States led moved to grudging approval of President Obama Republicans agree to extend the expiration of the tax cuts, even for the wealthiest Americans,
Last week, Moody and Fitch Ratings have expressed concerns about United States rating over the longer term with Moody fearing the impact if tax cuts become permanent. For more information, see
In a market obsessed with sovereign debt crisis euro, note the Moody said foreign currencies on their growth American debt worries investors and has been a factor of pressure on dollar Monday.
Insurance credit default swap market u.s. government debt was little changed Monday to about 41 basis points, or $41,000 per year to 10 million dollars in debt for five years, according to Markit Intraday.
A negative perspective indicates that rating may be more likely to be cut page on 12 to 18 months top Aaa rating. The United States currently have a stable perspective, indicating a change in credit rating is not planned at this time.
Moody believes the cost of the financing of tax bill proposed, along with unemployment benefits and other measures, possibly between $700 and $ 900 billion which will trigger the ratio of debt to GDP in 72 and 73 per cent, according to the effects on economic growth in nominal value.
This means that the debt of the Government revenue decline many physical more slowly over the next two years, a little less than 400% 420% at the end of fiscal 2010.
"This is a ratio high in both history and other highly rated sovereigns", Moody said.
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