Agency’s first review of AAA-rated country since 1996
Moody’s rating agency has indicated it is considering downgrading the U.S. triple-A debt rating due to the “rising possibility” the U.S. could default on its debt. While the agency said the risk of U.S. not raising its debt threshold in time to prevent a missed payment on outstanding bonds and notes is low, it’s not impossible. U.S. Federal Reserve chairman Ben Bernanke said a default would be disastrous. Negotiations at the White House about raising the debt ceiling are set to continue Thursday. The U.S. hit its $14.3 trillion debt limit on May 16, but has adjusted its spending and accounting to continue operation.