Moody's reassures investors on US debt

The US government’s triple-A credit rating is secure for now, but the situation could change in the future, according to Moody’s Investors Service.

Both the USA and the UK have borrowed huge amounts in an effort to stave off the worst of the financial crisis, leading to concerns that their triple-A status could be jeopardised.

Pierre Cailleteau, team managing director of Moody’s Sovereign Risk Group, said that the USA’s rating is currently ’safe’ and the firm’s outlook on the rating suggests a change will not occur in the next year and a half.

But Mr Cailleteau warned that the rating could be affected if either the US government is unable to bring public debt down to a sufficient level or if the dollar faced a challenger as the main international reserve currency.

However, the director did add that it was unlikely that the dollar would be placed in this position in the near future.
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