SC treasurer reacts to Moody’s credit warning

COLUMBIA, S.C. (AP) — South Carolina State Treasurer Curtis Loftis is urging Congress to find a permanent solution to the debt crisis in response to word from Moody’s Investors Service that the state’s credit rating probably would be lowered if it downgrades the U.S. government’s credit rating.

Loftis issued a statement Tuesday saying a solution must be found to balance the budget and eliminate what he called “Washington’s habitually spending beyond its means.”

Moody’s said it has placed on review for possible downgrade the triple-A bond ratings of Maryland, New Mexico, Tennessee, Virginia as well as South Carolina.

A triple-A rating is the highest for debt and tells investors an institutional borrower presents a minimal credit risk.

Moody’s said there is a small but rising risk the government will default on its debt.