U.S. Credit Rating Unaffected by Super Failure

Moody’s noted that the supercommittee’s failure does not bode well for future efforts to tame the deficit before the 2012 elections.

Dollar_Sign_RedThe nation’s top credit rating is “unaffected” by the failure of the supercommittee to reach a deficit-cutting deal, Moody’s Investors Service announced.

In a news release, the credit-rating agency said the nation’s AAA rating, which currently has a negative outlook, will remain the same for now, even though lawmakers failed to reach an agreement to substantially reduce the deficit.

While the supercommittee failure was seen as a major event on Capitol Hill, Moody’s said its dissolution does not substantially change America’s fiscal math. The panel failed to come up with its own plan to cut at least $1.2 trillion from the deficit, but now automatic cuts of that same amount are set to take effect in 2013.

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Source: Peter Schroeder | The Hill