Moody’s: U.S. Debt Shock May Hit In 2018, Maybe As Soon As 2013

Read and weep:  http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490

Short version: following earlier commotion over noises that it would downgrade US debt from AAA, Moody’s now clarifies what would make it issue such a rating change:

For the U.S., debt service of 18%-20% of federal revenue is the outer limit of AAA-territory, Moody’s managing director Pierre Cailleteau confirmed in an e-mail.
Under the Obama budget, interest would top 18% of revenue in 2018 and 20% in 2020, CBO projects.

But under more adverse scenarios than the CBO considered, including higher interest rates, Moody’s projects that debt service could hit 22.4% of revenue by 2013.”