Ratings Agencies Make Bold Changes on Pension Debt

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Credit rating agencies took some bold steps on Thursday, downgrading growth forecasts and cutting debt ratings both in the U.S. and abroad. Moody's Investors Service announced Thursday they will begin to take unfunded pension debt into account when formulating states' credit ratings — a move that could have a debilitating affect on struggling states. On the same day, Fitch Ratings cut their growth forecast for Tunisia by two percent in light of domestic political upheaval that has swept across the Middle East, and Standard and Poor's downgraded Japan's long-term government debt for the first time since 2002. What does this mean for countries, states, and the international economy?

New York Times Wall Street and finance reporter Louise Story joins us for a look at the powerful effect these ratings agencies have on states and nations across the world.