Moody’s downgrades US rating outlook to negative – Kommersant
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Rating agency Moody’s changed the US rating outlook from stable to negative. The decision was made due to the large budget deficit and reduced debt availability. The Joe Biden administration does not agree with the forecast change.
“Continued political polarization in the US Congress increases the risk that successive governments will be unable to reach consensus on a fiscal plan that aims to reduce debt affordability,” Moody’s said in a statement (quoted by Reuters).
At the same time, the agency maintained the long-term rating of the United States at AAA. It notes the high “institutional and governance strength of the United States,” which is supported by “effective monetary and macroeconomic policies.”
American authorities did not agree with the agency’s decision to change the forecast. “Although Moody’s statement maintains the US rating at AAA, we do not agree with the move to a negative outlook. The American economy remains strong, and Treasury securities are the safest and most liquid assets in the world,” Deputy Treasury Secretary Wally Adeyemo said in a statement. White House press secretary Karine Jean-Pierre, in turn, noted that the change in forecast is “another consequence of extremism and dysfunction” of Republicans in Congress.
Moody’s remains the last of the three major agencies to maintain its top rating for the United States. Fitch downgraded it from AAA to AA+ in August; S&P has kept it at AA+ since 2011.
About the reasons for the downgrade of Fitch’s rating – in the material “Kommersant” “The USA has lost its second stage”.
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