Moody’s expects to cut US rating without deal to lower debt/GDP ratio

• Budget negotiations likely to determine AAA rating and outlook
• If budget talks do not produce downward trend in debt-to-GDP ratio, rating likely to be lowered to AA1
• Assumes “relatively orderly” process for increasing debt limit
• The full Moody’s statement is here

For whoever wins the election, getting the votes from the public will be the easy part. Getting the votes in Congress will be painful.