U.S. Fiscal ‘Deterioration’ Pressures Top Rating, Moody’s Says
U.S. Budget Frees Up Government to Spend Trillions
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America’s top credit rating is likely to face downward pressure in the years to come because of a swelling national debt load and widening budget deficits, Moody’s Investors Service said.
The U.S., which is rated Aaa with a stable outlook, faces “downward pressure in the long-term, due to meaningful fiscal deterioration,” Moody’s analysts Sarah Carlson and Yves Lemay wrote Friday in a report. “Rising entitlement costs and rising interest rates will cause the U.S.’s fiscal position to further erode over the next decade, absent measures to reduce those costs or to raise additional revenues.”