Rep. Frank blasts credit rating agency for analysis of tax cut package

Rep. Frank blasts credit rating agency for analysis of tax cut package

By Michael M. Gleeson

Rep. Barney Frank (D-Mass.) on Wednesday lambasted Moody's Investors Service for suggesting the nation's credit rating will be hurt if Congress passes President Obama's tax cut proposal.

“The notion that the U.S. would default (if the tax cuts plan passes) is crazy. Absolutely crazy,” Frank said.

Moody's this week warned it could move a step closer to cutting the United States' Aaa debt rating if the tax cut package goes through.

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The outgoing chairman of the House Financial Services Committee questioned the rating agency's competency, stating that Moody's and other rating agencies blessed mortgage-backed bonds, some of which ended up as toxic assets, with Aaa ratings.

“The rating of the rating agencies has been downgraded more than anyone they have downgraded,” he said. “Personally, if I were Moody's, I would be careful given their lousy record.”

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