Moody's To Review U.S. Credit For Possible Default

Originally published on July 14, 2011 7:06 am
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MARY LOUISE KELLY, Host:

NPR's business news starts with a warning about U.S. bonds.

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LOUISE KELLY: The credit rating agency Moody's said it has put the U.S. government's bond rating on revenue for a possible downgrade. The agency cited the rising possibility that the government's debt limits won't be raised in time to prevent the U.S. from running out of money to pay its debts.

STEVE INSKEEP, Host:

President Obama and lawmakers are struggling to reach agreements on reducing the federal budget that's part of a deal to raise the debt ceiling. U.S. government bonds have long been seen as one of the safest investments in the world, so a downgrade to their credit worthiness would be unprecedented.

LOUISE KELLY: It would also push up rates on treasury bonds, making it costlier for the U.S. government to borrow. Transcript provided by NPR, Copyright NPR.