Moody's Investors Service Upgrades U.S. Debt

Moody's lifted the rating from "negative" to "stable" and affirmed the country's AAA rating. In a statement, it said the U.S. economy has demonstrated resilience in the face of major cuts to government spending. The country is on track to report its lowest annual deficit in five years.

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DAVID GREENE, HOST:

NPR's business news begins with a thumbs-up from Moody's.

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GREENE: The rating agency Moody's Investors Service has upgraded the U.S. government debt. Moody's lifted it from negative to stable, and also affirmed the country's AAA rating. In a statement, it said the U.S. economy has demonstrated resilience in the face of major cuts to government spending. The country is on track to report its lowest annual deficit in five years.

Now, Moody's lowered the outlook to negative two years ago but unlike Standard & Poor's, it did not strip the United States of its top credit rating.

Still, Moody's had a warning. It said the government needs to control longer-term deficits as more baby boomers collect Social Security and Medicare.

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