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In spite of the recent downgrading of the credit rating of the U.S. by Standard & Poor’s, Moody’s has come out with a more optimistic credit rating that affirms the U.S. credit ratings even if the affirmation came with caveats....   >>>

In spite of the recent downgrading of the credit rating of the U.S. by Standard & Poor’s, Moody’s has come out with a more optimistic credit rating that affirms the U.S. credit ratings even if the affirmation came with caveats.



Although both credit rating agencies agree on the same essential facts that the U.S. has way too much debt and is likely to incur more debt, the two agencies differ on their outlook on how the U.S. will resolve its debt crisis. Standard & Poor’s is pessimistic that a meaningful debt reduction will happen any time soon given the recent display of political brinkmanship in Congress. Moody’s, on the other hand, pegs it optimism on the fact that the recent raising of the debt ceiling has minimized the risk of default on America’s end.