How popular will the republicans be after this damage hits? clo
5 States Have Credit Ratings Put on Review by Moody’s for U.S. Dependence
By James Nash and William Selway - Jul 19, 2011 4:17 PM ET .
Five of 15 states with top bond ratings from Moody's Investors Service may be downgraded.
Five of the 15 states with top bond ratings from Moody’s Investors Service may be downgraded because their dependence on federal revenue makes them vulnerable to a U.S. credit cut should talks to raise the debt limit fail.
Maryland, South Carolina, New Mexico, Tennessee and Virginia are under review, Moody’s said today. The action affects $24 billion of general-obligation and related debt, it said. The states are rated Aaa, Moody’s top municipal grade.
The credit evaluator said on July 13 it may cut the federal government’s Aaa rating as congressional Republicans and President Barack Obama’s administration failed to agree on raising the U.S. debt limit. Moody’s said the next day it would scrutinize top-rated states, municipalities, housing programs and other debt issuers.
“Should the U.S. government’s rating be downgraded to Aa1 or lower, these five states’ ratings would likely be downgraded as well,” New York-based Moody’s said today. Aa1 is Moody’s second-highest rank. Any change in the state ratings would be announced seven to 10 days after action on the U.S., it said.
Democrats and Republicans have yet to agree on raising the government’s debt limit with an Aug. 2 deadline looming. Without the ability to borrow, the Treasury would have to cut about $134 billion of spending during August, according to a report by the Washington-based Bipartisan Policy Center.
http://www.bloomberg.com/news/2011-07-19/5-states-debt-ratings-on-review-by-moody-s-for-u-s-dependence.html
DO SOMETHING!
| 
