On October 15, the Department of the Treasury announced the United States will be unable to pay its obligations if Congress does not raise the country’s debt limit by November 3.
Republicans and fiscal conservatives in Congress have threatened to cap the limit unless the White House agrees to budget spending cuts.
Moody's argued that the risk of Congress failing to raise the debt ceiling in time remains low.
"Even if the debt limit is not raised, we believe the government will order its payment priorities to allow the Treasury to continue servicing its debt obligations," Moody's Senior Vice President Steven Hess said.
On Thursday, the US Treasury postponed an auction for two-year government bonds as the United States has moved too close to the country’s debt ceiling deadline.
Congressman Steny Hoyer said in a press conference on Friday that Democrats at the House of Representatives hope closer cooperation with Republicans will enable the passing of legislation to increase the US debt ceiling early this week.
At present, the US debt stands at $18.4 trillion.
