NEW YORK – The U.S. government takeover of mortgage funding companies Fannie Mae and Freddie Mac poses no threat to the U.S. “AAA” sovereign debt rating, Moody's Investors Service said Monday.

“Not intervening would not have left public finances in any better shape,” said Pierre Cailleteau, head of the sovereign ratings group for Moody's.

Though the government's cost of borrowing may rise, the de facto nationalization of the troubled mortgage funding companies will likely result in a stronger U.S. economy than would have otherwise been the case, Cailleteau said on a conference call.

(Reporting by Dena Aubin; Editing by James Dalgleish)