S&P, Moody's Say US Credit Rating at Risk

Two prominent credit-rating agencies say the US could lose its AAA credit rating if it doesn't get in better financial shape, the Wall Street Journal reports. Standard & Poor's and Moody's both issued dire warnings on the nation's creditworthiness—although investors didn't seem much bothered. Moody's cited rising debt, and S&P worried about high unemployment, notes Barron's.

"We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the US, the likelihood of a negative outlook over the next two years will increase," said a Moody's analyst. The markets—down a modest 24 points on the day—barely noticed. "My traders are shrugging it off as stuff we've heard before," says a boss at Guggenheim Partners. (More credit rating stories.)