"Moody's Investors Service has placed the Aaa bond rating
of the government of the United States
on review for possible downgrade given the rising possibility
that the statutory debt limit will not be raised on a timely basis,
leading to a default on US Treasury debt obligations.
...The review of the US government's bond rating is prompted
by the possibility that the debt limit will not be raised in time
to prevent a missed payment of interest or principal on outstanding bonds and notes.
As such, there is a small but rising risk of a short-lived default.
Moody's considers the probability of a default on interest payments
to be low but no longer to be de minimis.
An actual default, regardless of duration,
would fundamentally alter Moody's assessment of the timeliness of future payments,
and a Aaa rating would likely no longer be appropriate."
Calculated Risk
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