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The United States should do away with the debt ceiling altogether to bring greater certainty to investors in U.S. Treasury bonds, Moody’s suggested Monday. With the August 2 deadline for raising the debt ceiling barely more than two weeks away, the bond-rating agency issued a report Monday noting that the U.S. is one of just a few countries that has a statutory borrowing limit and saying that the limit creates “periodic uncertainty” for investors, Reuters reported. Moody’s threatened last week to downgrade the AAA rating of the U.S. government if it is unable to meet its debt obligations next month...

So the credit-rating agencies that helped to create the financial crisis that led to a deep recession are now warning that the U.S. could lose the AAA rating it has had since 1917. As painfully ironic as this is, there's no benefit in shooting the messengers. The real culprit is the U.S. political class, especially the President who has presided over this historic collapse of fiscal credibility. Moody's and the boys are citing the risk of a default on August 2 as the proximate reason for their warning. But Americans should understand that the debt ceiling is merely the trigger....

The ratings agencies — all-knowing, all-seeing, omniscient — have weighed in on the U.S. federal debt “crisis,” talking about downgrading U.S. paper in anticipation of a Beltway failure to cut a deal to raise the debt ceiling, thus engendering a “default.” Oh, please. Can anyone believe that the global capital market cannot distinguish between a Greek-type situation, in which the government literally cannot service its debts, and the U.S. condition, in which a political dispute might delay some interest payments for a few days? The question answers itself. More generally, has there ever — ever– been a case in which...

WASHINGTON (Reuters) - Moody's Investors Service jolted White House debt talks on Wednesday with a warning that the United States may lose its top credit rating in the coming weeks, piling pressure on Washington to lift its debt ceiling. Underscoring the effect a potential default would have on financial markets, Federal Reserve Chairman Ben Bernanke said if Washington failed to raise the U.S. borrowing limit in time, the United States would pay creditors first and stop benefits such as payments under the Social Security retirement program.

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service said late Wednesday it placed the U.S. government's triple-A bond rating on review for possible downgrade due to rising risk of default. "The review of the U.S. government's bond rating is prompted by the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes. As such, there is a small but rising risk of a short-lived default," Moody's said. The rating agency stressed that it considers the probability of a default to be low but no longer minimal.

Moody's on Tuesday cut Portugal's credit standing to junk in the first such move by a ratings agency and warned the country may well need a second round of rescue funds before it can return to capital markets. Moody's Investors Service slashed Portugal's credit rating by four levels to Ba2, making it follow Greece into junk territory below investment grade. It cited heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilization targets set out in its loan agreement with the European Union and International Monetary Fund. There also is an increasing probability...

<p>BEIJING (Reuters) - China's local government debt burden may be 3.5 trillion yuan ($540 billion) larger than auditors estimated, putting banks on the hook for deeper losses that could threaten their credit ratings, Moody's said on Tuesday.</p> <p>Addressing the estimate by China's state auditor that its local governments have chalked up 10.7 trillion yuan of debt, Moody's said it found more potential loans after accounting for discrepencies in figures given by various Chinese authorities.</p>

JUNE 15, 2011, 9:09 A.M. ET Moody's Warns On French Banks, Eyes Other Euro-Zone Banks By Elena Berton Of DOW JONES NEWSWIRES PARIS (Dow Jones)--Moody's Investor Service warned Wednesday it may downgrade French banks because of their high exposure to Greece, saying the net could soon be widened to include banks elsewhere in the euro zone as European officials struggle to agree a new Greek aid package. France's three largest banks by market value, BNP Paribas SA (BNP.FR), Credit Agricole SA (ACA.FR) and Societe Generale SA (GLE.FR), were put on review for possible downgrades over the potential impact on earnings...

As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late. Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken. "In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP. China, likewise, has long come under criticism for allowing its currency to weaken. But while Dagong Global is known for being tough on the U.S., Guan's words carry extra...

Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit. Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers. "I am confident that two things are going to happen this summer," Geithner told reporters after the meeting. "One is that we are going to avoid a default crisis and we...

Moody's Investor's Service said it would place the government's Aaa rating under review for a possible downgrade due to the "very small but rising risk" of a short-lived default if the White House and Republican leaders can't agree on raising the nation's debt ceiling, which has already hit $14.3 trillion. Moody's announcement followed the lead set by S&P, which announced in April that it was downgrading the U.S. credit outlook to negative over the nation's mounting debt. The news was just the latest sign of the massive financial problems facing the nation as the economy's recovery sputters. ... Rep. Dave...

Moody's Investors Service has today downgraded Greece's local and foreign currency bond ratings to Caa1 from B1, and assigned a negative outlook to the ratings. The rating action concludes the review for possible downgrade that the rating agency initiated on 9 May 2011.

This is actually pretty funny. Moody's is out with a new comment about the debt ceiling fight (via @zerohedge). The ratings agency expects the debt ceiling to be passed, but... they say that if it looks like the US might default, America's pristine credit rating would have to be placed "under review." Seriously!? OBVIOUSLY if a default appeared likely, then the US rating should be under review. In fact, it should be downgraded. And in fact, it should be downgraded a lot, since a default is basically the worst thing possible for bond investors. And in fact, Moody's should probably...

Moody's is warning that unless we change our ways, our bonds will be downgraded. This doesn't mean it will happen or happen anytime soon. We're not going to slide to junk bond status tomorrow, although if Obama can't be stopped, who knows where our rating will end up. But if you listen to these guys, they don't sound real confident we'll be able to change. The Wall Street Journal: "Moody's Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its 'Aaa' rating. 'We have...

Two leading credit rating agencies on Thursday cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction. Moody's Investors Service said in a report Thursday that the U.S. will need to reverse an upward trajectory in the debt ratios to support its triple-A rating. "We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase," said Sarah Carlson, senior analyst at Moody's. Standard &...

Jim Sinclair’s Commentary Moody’s had taken comfort in their role of the short of the euro play. They took protection in Federal court from suits over the accuracy of ratings based on free speech. Legally that is looking shaky but they still have Federal Court to take comfort in. The second they downgrade US credit, they have signed their litigation death warrant. They know this and might be playing a game of chicken.

Tax Deal: The media are touting a rating agency's schizophrenic claim that keeping the Bush tax rates helps the economy, but hurts the country's credit standing. Are ratings firms even relevant anymore? Manhattan Institute senior fellow Nicole Gelinas, in her richly detailed analysis of the roots of the financial crisis, "After the Fall: Saving Capitalism from Wall Street — and Washington," pulls back the curtain and exposes the ugly reality of the once all-powerful credit ratings agencies Moody's, Fitch and Standard & Poor's. "Reliance on ratings agencies contravenes market principles," Gelinas warns. "The ratings-agency world is small and homogeneous, populated...

Moody's says Spain banking outlook "negative" Katell Abiven, 12:30, Monday 13 December 2010 Credit rating agency Moody's issued a negative outlook on Spain's banks on Monday and warned that total economic losses could reach 176 billion euros. New York (Xetra: A0DKRK - news) -based Moody's Investors Service said it was maintaining a negative view for the next 12-18 months because it expected Spanish banks' capital, profits and access to finance to remain weak. The verdict comes as Spain battles to convince nervous markets that its finances are solid and there is no reason to fear it will need an Irish-style...

Moody's Worried US Tax Cuts Could Become Permanent Tuesday, 07 Dec 2010 01:37 PM Moody's Investors Service is worried the extension of U.S. tax cuts agreed by President Barack Obama and Republican leaders could become permanent, hurting U.S. finances and its credit ratings in the long run. Steven Hess, Moody's lead sovereign analyst for the United States, said on Tuesday doesn't foresee any change in the U.S. AAA ratings in the next 18 months to two years. He is, however, concerned about "what's going to happen in two years," when the extensions are set to expire again. "The timing two...

Moody's Investors Service Inc. said a permanent extension of the tax cuts first enacted under former President George W. Bush won't lead to a downgrade of the nation's credit rating....frpa