Moody's Will Cut U.S Debt Rating

NEW YORK. Moody's Investors Service cut its debt rating will likely be government of the United States (U.S.). Moody's said it would review its ratings of U.S. government debt at Aaa level, to the possibility of lowered. Unless there is progress in increasing the debt limit by mid-July.

These rating agencies assess, the increased polarization over the debt limit has increased the likelihood of default in record time. "If this situation remains unchanged in the coming weeks, Moody's will review the U.S. rankings," said Moody's, in a report today.

Treasury Secretary Timothy F. Geithner warned failure to raise the debt ceiling on August 2, probably negative effect on the U.S. economy with a sharp rise in borrowing costs. On that date he projected borrowing authority will be exhausted.

However, Geithner today predicts will reach an agreement in an effort to avoid a crisis in default and long-term fiscal plan.

Meanwhile, Speaker of the House Republican John Boehner using Moody's statement to underline his party's position, which is any agreement on the debt ceiling increase of U.S. $ 14.3 trillion must be accompanied by a plan to reduce the budget deficit. "Increasing the debt limit without a large expenditure cuts would threaten the economy," Boehner said.

In April, Standard & Poor's said the U.S. government at risk of losing AAA debt rating, except for policy makers in 2013 approved a plan to reduce the budget deficit and national debt.

U.S. government bond yields 10-year rise of 3.01% to 3.03%, at 5 pm in New York.