Moody's to US: Debt ceiling rise or downgrade, you choose

The rating agency said it would take the action due to the "very small but rising risk" of a short-lived default. If the US debt limit is raised and default avoided, it will keep its Aaa rating. However, Moody's outlook for the country will depend on the outcome of negotiations on deficit reduction, it said. Lack of such an agreement could prompt the rating agency to change its outlook to negative on the Aaa rating, Moody's said. "Failure to reach an agreement as part of the current negotiations would increase the likelihood of a negative outlook in the near term. At present, th...