2023-11-11 11:51:58
International credit rating agency Moody’s adjusted the US credit rating outlook from ‘stable’ to ‘negative’.
According to the Associated Press, Moody’s released a statement yesterday (10th) citing rising interest rates and political polarization in the U.S. Congress as reasons for this adjustment.
Currently, Moody’s is the only credit rating agency that maintains the U.S. government’s national credit rating at ‘AAA’. However, the media assessed that the downgrade of the rating outlook implied that Moody’s credit rating might actually be lowered.
Last August, Fitch, another credit rating agency, downgraded the U.S. national credit rating from AAA to AA+, and Standard & Poor’s (S&P) downgraded it in 2011.
The media is linking political polarization, which Moody’s presented as a reason for adjusting its credit rating outlook, to the possibility of a temporary suspension of work, or shutdown, of the U.S. Congress.
Previously, the U.S. Congress passed a 45-day temporary budget following a standoff ahead of the September 30 deadline for next year’s budget.
Accordingly, if the budget is not processed by the 17th, the federal government will temporarily suspend its work.
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