Tennessee's credit rating could be downgraded - WRCBtv.com | Chattanooga News, Weather & Sports

Tennessee's credit rating could be downgraded

Posted: Updated:

By ALEX VEIGA
AP Business Writer

NEW YORK (AP) - Moody's Investors Service says it will likely lower the credit rating on five states should the ratings firm downgrade the U.S. government's credit rating.

The credit rating agency said Tuesday that it has placed on review for possible downgrade the AAA bond ratings of Maryland, New Mexico, South Carolina, Tennessee and Virginia.

Last week, Moody's placed the U.S. government's credit rating under review for a possible downgrade, citing a small but rising risk that the government will default on its debt as Congress and the White House wrestle over raising the nation's $14.3 trillion borrowing limit.

The firm's review of the five states affects some $24 billion in obligations and related debt, combined.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly