Washington: US President George W Bush today cautioned his successor Barack Obama that the country still faced a "grave threat" of a terrorist attack but dismissed assessments that America's global moral standing was damaged during his presidency.

In his last formal news conference before demitting the White House on January 20 after a turbulent two-term presidency, Bush rejected critisism of his "war on terror" tactics and his policy on Iraq and on the economic crisis facing the nation.

He said the president-elect will be facing an enemy that "would like to inflict damage" on Americans. Bush appeared indignant when asked about America s bruised image overseas in the aftermath of the invasion of Iraq.

"I disagree with this assessment that, you know, that people view America in a dim light, he said.

Bush said he realises that some issues such as the prison for suspected terrorists at Guantanamo Bay, Cuba, have created controversy. But he defended his actions after the September 11,2001,terrorist attacks, including approving tough interrogation methods for suspected terrorists to protect the country.

Bush talked about threats posed by North Korea and Iran, members of what he once referred to as an "axis of evil." He said Pyongyang is "still a problem" - and that it is important that talks on that country's nuclear programme bring about a "strong verification regime."

He also described Iran as "still dangerous".

Source : PTI