All Together Now: Debt Rating Agency Promises No Credit Rating Drop - As Long As Debt Holders Get Paid

Valley Forge. Gettysburg. Iwo Jima. Nice to know that we're all pulling together as US default on its debt approaches due to Congressional hissy fits. Social Security recipients among the Tea Party who are threatening their representatives with recall if they vote to raise the debt limit do have one added piece of advice: dont forget to keep paying OUR checks.

But the winner in the Me-First Sweepstakes goes to Moody's Investor Services. You may recall they are one of the debt rating agencies that approved the toxic mortgage securities that sparked the financial crisis. They are now cautioning that the US rating may be lowered - unless bond holders get paid first in case of a default.

Nice to know so many concerned citizens are thinking about their country first... JL

Martin Crutsinger reports in Huffington Post:

Moody's Investors Service says the United States should be able to keep its triple-A credit rating as long as Washington works out a deal that lets it continue to pay bondholders. The credit rating agency said late Friday that it thinks that even if the debt limit isn't raised by Tuesday's deadline, the government would give priority to making interest payments on its debt and thereby avoid a default.

Moody's had warned July 13 that the country's credit rating was in danger of being downgraded because of the stalemate in Congress over raising the debt limit. But in its statement Friday, Moody's said it would likely rate the U.S. debt as triple-A but with a negative outlook.