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Moody’s Issues Warning: Credit Rating Will be Downgraded Without “Substantial Deficit Reduction”

June 02, 2011

Washington, DC — Ways and Means Committee Chairman Dave Camp (R-MI) made the following statement in response to the announcement by Moody’s Investors Services that America’s credit rating will “depend on the outcome of the negotiations on deficit reduction. A credible agreement on substantial deficit reduction would support a continued stable outlook; lack of such an agreement could prompt Moody’s to change its outlook to negative.”

“Today’s announcement from Moody’s simply reinforces the position already announced by S&P and a clear bipartisan majority in the House of Representatives.  Any increase in the debt limit must be accompanied by significant spending reductions and real entitlement reforms that will bring down the level of the national debt.  We know the main driver of our debt is health care spending — especially Medicare and Medicaid.  House Republicans have put forward bold solutions to deal with this crisis and it is time for the President to come to the table and join us in talking about specific policy solutions.”