Moody's Ratings annual report said the US...>

US TSYS: Moody's Ratings annual report said the US is "supported by robust

strengths despite fiscal challenges", and noted "Congress has not yet agreed to

raise the debt ceiling. The stable outlook on the US's Aaa rating reflects

Moody's view that the debt ceiling will ultimately be raised, and that, even if

it were not, the probability of the US missing a debt payment is low. Shd debt

ceiling not be raised by the time the extraordinary measures are exhausted, we

expect that interest payments on debt will be prioritized." As Moody's said in

past, "failure to meet a debt payment would have negative rtg implications."

- Moody's said US Aaa stable credit profile "well supported by formidable

strengths, but rising entitlements spending underscore the importance of

effective fiscal policy for the US credit profile in the yrs ahead." It said in

annual credit analysis report  US rating "sustained by a dynamic and competitive

economy, and the unique role that the US$ plays in global financial mkts and the

deepest and most liquid govt bond mkt, 2 features that allow the US govt to

carry a higher debt burden" vs other sovereigns; but US does have "important

credit challenges" esp. on "its fiscal position."