Moody’s: U.S. May Lose its AAA Rating

According to a report from Fox Business News Moody’s Investors Service warned that the United States may lose its AAA-rating if it does not reduce the deficit in the next three to four years.

The United States, which posted a record deficit in the last fiscal year, may lose its AAA-rating if it does not reduce the gap to manageable levels in the next 3-4 years, Moody’s Investors Service said on Thursday.

The U.S. government posted a deficit of $1.417 trillion in the year ended Sept. 30 as the deep recession and a series of bank rescues cut a gaping hole in its public finances.

The White House has forecast deficits of more than $1 trillion through fiscal 2011.

“The Aaa rating of the U.S. is not guaranteed,” said Steven Hess, Moody’s lead analyst for the United States said in an interview with Reuters Television. “So if they don’t get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy.”

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Moody’s: Reducing Deficit Key to US Rating

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