Debt Agreement Is ‘Credit Positive’ for U.S., Moody’s Says

The U.S. government’s borrowing-limit agreement includes “credit-positive elements” for its Aaa rating, as it showed officials will act to ensure payments to creditors and created a process that may lead to debt reduction, according to Moody’s Investors Service.

“Although the existence of the debt limit is a negative for the country’s debt management and for financial markets, the government and politicians will act to protect the ability of the government to meet its obligations,” Steven Hess, Moody’s senior vice-president and lead sovereign analyst for the U.S., wrote today in a report.