Moody’s Investors Service affirmed today the triple-A credit rating of the U.S., amid concerns about its creditworthiness that have been circulating lately in financial markets. The rating agency said the U.S. economy’s long-term resilience and key role in global affairs should bolster its ability to resume a strong performance following the current recession.
From Reuters: “Even with a significant deterioration in the U.S. government’s debt position, its rating has a stable outlook and demonstrates the attributes of a Aaa sovereign,” Moody’s said in a statement.
But the rating agency warned if the U.S. failed to reduce its current debt levels, which is expected to hit $1.75 trillion this fiscal year, once economic growth resumes, the top credit grade could come under pressure. Moody’s also noted in its statement the greenback’s status as a reserve currency plays a crucial role in the country’s continuing ability to fund its debts.