Rating agency mulls reviewing U.S. debt rating

Ratings agency Moody's may cut U.S. AAA debt rating due to the rising possibility the country would default on its debt obligations, the BBC reported. The agency warned the likelihood the U.S. would fail to raise its statutory debt limit in time to avert default was low but not insignificant, said the report. Rating agency mulls reviewing U.S. debt rating Meanwhile in Washington, U.S. President Barack Obama and several Republican and Democratic congressional leaders held a fourth round of negotiations on Wednesday aimed at achieving a deficit reduction and debt compromise, said VOA. The report noted that White House spokesman Jay Carney would not reveal any specifics of the talks. Asked if Obama would rule out a very short stop gap measure, if negotiators were on the edge of a larger compromise, Carney said "there is enough time to get this done", and that the U.S. president "believes there is momentum toward achieving a significant balanced deficit reduction package". In addition to the president, his advisers, and lawmakers the White House negotiations have included Treasury Secretary Timothy Geithner, who warned of the dire consequences of a debt default on August 2. U.S. Federal Reserve Chairman Ben Bernanke said a default would have wide-ranging impacts. "Clearly if we went so far as to default on the debt it would be a major crisis," he said. Barack Obama (Beta/AP)

Rating agency mulls reviewing U.S. debt rating

Meanwhile in Washington, U.S. President Barack Obama and several Republican and Democratic congressional leaders held a fourth round of negotiations on Wednesday aimed at achieving a deficit reduction and debt compromise, said VOA.

The report noted that White House spokesman Jay Carney would not reveal any specifics of the talks.

Asked if Obama would rule out a very short stop gap measure, if negotiators were on the edge of a larger compromise, Carney said "there is enough time to get this done", and that the U.S. president "believes there is momentum toward achieving a significant balanced deficit reduction package".

In addition to the president, his advisers, and lawmakers the White House negotiations have included Treasury Secretary Timothy Geithner, who warned of the dire consequences of a debt default on August 2.

U.S. Federal Reserve Chairman Ben Bernanke said a default would have wide-ranging impacts. "Clearly if we went so far as to default on the debt it would be a major crisis," he said.