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On Friday, Moody’s rating announced that it dropped down US credit rating It sees it as the possibility of deteriorating in the future by a notch due to frequent fiscal deficit.
The downgrade moves a notch down from AAA to AA1 on Moody’s 21-not rating scale. The firm also changed its view from negative to stable for America.
Moody said that downgrad “reflects more than a decade over a decade. Government loan And the interest payment ratio for those levels that are much higher than the equally rated sovereign. ,
The downgrade moves a notch down from AAA to AA1 on Moody’s 21-not rating scale. (Reuters / Kevin Lamark / Reuters)
The CBO says that to widen the US budget deficit, the national loan to increase by 156% of GDP
The firm explained, “Continuous US administration and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficit and rising interest costs,” the firm explained. “We do not believe that compulsory expenses and losses in losses will result in the result of current fiscal proposals under consideration on the lack of multi-year.”
Moody said that a decision was taken to stabilize a deteriorating fiscal approach and deficiency. (Through Saul Loaib / AFP Getty Image / Getty Image)
Moody said that it sees the federal government’s fiscal view deteriorating in the years ahead Spending on eligibility programs Medicare and social security continue to increase amid interest payments on loans due to aging of America’s population and increasing high interest rates and deficit.
“In the next decade, we expect a huge deficit as the entitlement spending increases, while the government revenue remains flat. In turn, the loans and interest burden of the government will be increased by continuous, large fiscal deficit. America’s fiscal performance is likely to deteriorate relative to its past and compared to other high-purified sovereignty,” Moody said.
The department of Treasury Building is seen on August 29, 2022 in Washington, DC. ((Photo by Daniel Slim / AFP through Getty Image) / Getty Images)
Although it downed the US credit rating by a rug, Moody also changed its attitude from “negative” to “stable” to “steady” in combination with the move, explaining that it reflects the “balanced risk” in AA1 Tier.
“America retains exceptional credit strength like the size, flexibility and dynamics and role of its economy US dollar As a global reserved currency, “the firm explained.” Furthermore, while in recent months, policy is characterized by a degree of uncertainty, we hope that America will continue its long history of very effective monetary policy led by an independent Federal Reserve. ,
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Dowgrad comes as president Donald Trump’s The sweeping tax bill failed to clean a significant procedural obstacle on Friday, as the radical Republican, who demanded a rare political shock for the Republican President in the Congress, blocked a rare political shock for the Republican President in the Congress.
The deduction follows a downgrade by rival Fitch, which cuts the US sovereign rating in August 2023, which cited the expected fiscal decline and repeatedly repeated negotiations of the terrace of the terrace that threatens the government’s ability to pay their bills.
Reuters contributed to this report
