With just over a week to go before the desired deadline set by the Obama administration to pass a U.S. Debt Deal bill that raises the U.S. Debt Ceiling above the current $14.3 trillion limit, it still looks as if a negotiated deal will not be met anytime soon after President Obama stormed out of a meeting upon Cantor’s suggestion of passing multiple mini ceiling increases. All of this also came just after Moody’s Investors Service placed the United States under review on the possibility of it defaulting.
Included in the review were financial institutions that have direct ties to the debt troubled U.S. economy, including Fannie Mae and Freddie Mac. Since 1917, the United States has held an Aaa rating, however this is not the first time it has been placed on review, as it was reviewed in 1995 as well.
Upon the defaulting of the U.S government and it missing its initial payments, the nation would likely be reduced to Aa. Upon falling to this rating, it is not guaranteed that upon fixing the default issue, that the Aaa rating would be restored.