Uncle Sam Could Risk AAA Status As Early As 2012

09-09-2009 • The Business Insider

What does it take to risk losing your triple-A status? For Moody's, your AAA-rating starts to become an issue once interest payments reach 10% of your revenue. Unfortunately, given rising debts and falling tax revenues, the US could hit this level as soon as 2012. While Moody's has recently stated that America's AAA isn't at risk, they have definitely started to give the US some polite nudging. WSJ: In its report Wednesday, Moody's singled out the U.S. and the U.K. as two countries that "have lost altitude" among those with triple-A ratings, but noted they remain in the group of "resilient" economies, better placed to keep their ratings intact than Spain, which it called "vulnerable."