Moody's says US should retain top credit rating

July 29, 2011 - 5:29 PM

WASHINGTON (AP) — Moody's Investors Service says the United States should be able to keep its triple-A credit rating as long as Washington works out a deal that lets it continue to pay bondholders.

The credit rating agency said late Friday that it thinks that even if the debt limit isn't raised by Tuesday's deadline, the government would give priority to making interest payments on its debt and thereby avoid a default.

Moody's had warned July 13 that the country's credit rating was in danger of being downgraded because of the stalemate in Congress over raising the debt limit. But in its statement Friday, Moody's said it would likely rate the U.S. debt as triple-A but with a negative outlook.