US Must Make Its Mid-June Interest Payment to Avoid Downgrade, Moody’s Says
- Moody’s says missed $2 billion payment would trigger downgrade
- Firms diverge, with Moody’s outlook stable, Fitch now on watch
The US Treasury Department in Washington, DC.
Photographer: Al Drago/BloombergWith investor attention on the US sovereign credit rating rising as the federal government gets ever closer to running out of cash, Moody’s Investors Service says that a mid-June payment of interest on Treasuries will be critical for maintaining the top, AAA grade.
On June 15, the Treasury Department is due for about $2 billion in interest payments. Treasury Secretary Janet Yellen warned Sunday on NBC that “the odds of reaching June 15th, while being able to pay all of our bills, is quite low” if Congress doesn’t raise the debt limit.