by Steven Russolillo
Wall St Journal Blogs
Well, you knew this was coming.
Moody’s warned that Congressional budget negotiations ahead of the looming “fiscal cliff” will likely determine the future of its triple-A rating on U.S. government debt.
If negotiations aren’t successful, Moody’s said it would expect to lower its rating, probably to Aa1.
Markets haven’t had much of an immediate reaction. Stock futures are up slightly, while Treasury yields are ticking higher.