Moody's threat to strip US of top rating

Moody's has threatened to downgrade America's prized triple A credit rating if Congress fails to reach a deficit reduction deal, raising the stakes in the fiscal debate that lies at the heart of the November election.

The rating agency said it is considering joining its rival Standard & Poors, which stripped the US of its top rating last year, if a deal is not reached by the end of 2013. The threat is likely to feed into election campaign concerns over the state of the economy and lift Republican hopes of a boost for Barack Obama's challenger, Mitt Romney, by focusing attention on the size of the national debt ... READ MORE

Released by the Financial Times - 11 September 2012