Moody’s shrugged off the possibility that Washington might fail to raise the $16.7tn debt ceiling in time to avoid a technical default, even as the White House and Republicans remained deadlocked on fiscal fights gripping the capital.
The debt rating agency said yesterday that its triple A sovereign rating and stable outlook for the US was unlikely to change, since it expected lawmakers and the US president to agree on extending the borrowing limit. It also believes that the parties will avoid a shutdown of the government.
“Our rating is based on long-term budget projections and it’s unlikely that we will take a rating action based on these short-term events,” said Steven Hess, lead analyst for the US rating at Moody’s.