The credit rating agency said in the statement it will not immediately lower the nation's rating on long-term debt after a special congressional panel failed this week to reach agreement on alternative cuts to the deficit.
The impasse triggered the automatic cuts, which are scheduled to begin in 2013. Moody's said any effort to reduce those cuts could force the agency to downgrade its rating. Some Republicans are vowing to block the cuts slated to occur in defense programs, which amount to about half of the total.
The agency said it had decided to take no action based on the failure of a special congressional panel to come up with a plan because the automatic cuts will result in the same level of deficit reduction.
Moody's did not say when it would conduct its next review of the U.S. credit rating. Fitch, another rating agency, also has a triple-A rating on U.S. debt but said in August that a failure of the congressional panel to produce a plan could lead to a reassessment of that rating.
On Monday, after the announcement of the 12-member congressional panel's impasse, Standard & Poor's said it would not downgrade the U.S. credit rating. Like Moody's, it warned that its present rating was based on the expectation that the automatic cuts will not be reduced.
The impasse triggered the automatic cuts, which are scheduled to begin in 2013. Moody's said any effort to reduce those cuts could force the agency to downgrade its rating. Some Republicans are vowing to block the cuts slated to occur in defense programs, which amount to about half of the total.
The agency said it had decided to take no action based on the failure of a special congressional panel to come up with a plan because the automatic cuts will result in the same level of deficit reduction.
Moody's did not say when it would conduct its next review of the U.S. credit rating. Fitch, another rating agency, also has a triple-A rating on U.S. debt but said in August that a failure of the congressional panel to produce a plan could lead to a reassessment of that rating.
On Monday, after the announcement of the 12-member congressional panel's impasse, Standard & Poor's said it would not downgrade the U.S. credit rating. Like Moody's, it warned that its present rating was based on the expectation that the automatic cuts will not be reduced.
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