Did A Moody's Analyst Make A Big Gaffe About The Safety Of The US Credit Rating?

Steven Hess

Looks like someone at Moody’s spoke out of turn…

FT Alphaville reports that Moody’s analyst Steven A. Hess was quoted by Market News International: “A permanent extension of the tax cuts would be a definite negative.” And over the medium term, pressures on the sovereign rating could develop if the country does not adequately address its debt trajectory.

But then later he was quoted to Bloomberg “clarifying” his stance

    “We have a Aaa outlook for the U.S. that is stable and we are not contemplating changing anything anytime soon, that is the bottom line,” Steven Hess, senior credit officer at Moody’s in New York, said in an interview today. An Aaa rating is the highest credit rating Moody’s gives and signals “minimal credit risk,” according to the New York-based company’s website …

Phew. Glad that’s clarified.

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