Moody’s cuts US credit rating outlook to ‘negative’ as shutdown looms | louder.news

Moody’s Investors Services this week downgraded the outlook for the US credit rating from “stable” to “negative” as another government shutdown looms.

“Continued political polarization in the US Congress increases the risk that successive governments will be unable to reach consensus on a fiscal plan to stem the decline in debt affordability,” Moody’s said in a statement.

He added: “Against the backdrop of higher interest rates, without effective fiscal policy measures to reduce government spending or raise revenue, Moody’s expects US fiscal deficits to remain very large, significantly weakening the debt affordability”.