The U.S. government’s Aaa credit rating may face a downgrade review if there’s no progress on increasing its statutory debt limit, said Steven Hess, senior credit officer at Moody’s Investors Service.
A bill to raise the debt limit by $2.4 trillion failed to win passage in the House of Representatives May 31 in a vote Democrats said was rigged to ensure its defeat. Republicans who control the House announced the vote last week as a way to demonstrate lawmakers don’t support extending the $14.3 trillion cap unless agreement is reached with President Barack Obama’s administration on significant spending cuts.
