But Moody’s said the overall US government debt rating — at “Aaa” the highest possible rating — and the country’s credit fundamentals would not be impacted by the debt ceiling issue.
“Moody’s feels that the treasury will be able to meet its payments during most of July, but the picture becomes less clear thereafter,” Moody’s said in a statement.
The treasury and Congress have locked horns over raising the nation’s $5.95 trillion debt ceiling, which the treasury has said would be reached on
Friday. Late on Thursday congressional aides said the House of Representatives would vote in the evening on approving a measure that would lift the debt by $450 billion. The senate has already passed such a measure.