Moody’s made comments on the sovereign paper of the UK, UK, Germany, and France. Each of these nations has a Aaa rating currently.
The assessment of each was harsh but the US was singled out in particular:
For the four largest Aaa countries — France, Germany, the UK and the US — these paths show little change from those analyzed by Moody’s last August. Looking beyond the near-term evolution of their credit metrics, Moody’s emphasizes that all four countries face dramatic increases under their existing policy commitments arising from ageing-related pension and healthcare subsidies. These future costs must be brought under control if these countries are to maintain long-term stability in their debt burden credit metrics.
The political consequences are such that Congress is unlikely to do anything, even if the US eventually loses it Aaa rating. No one dares suggest changes in the basic structure of Social Security, Medicare, and Medicaid.
Douglas A. McIntyre
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
