Moody's: U.S. rating hinges on more deficit action

WASHINGTON (MarketWatch)
Moody's Investors Service Inc. said Wednesday that a lack of further deficit-reduction measures could negatively affect the U.S. credit rating, currently at AAA with a negative outlook
A day after the House of Representatives passed a deal to avert the fiscal cliff of tax increases and spending cuts, Moody's said it expects fiscal debates "in coming months" to result in lower future budget deficits
Lower deficits are necessary "if the negative outlook on the government's bond rating is to be returned to stable," Moody's said
Moody's said it believes that the U.S. debt limit will ultimately be raised but said the outcome of negotiations is uncertain