December 5, 2023

Taylor Daily Press

Complete News World

The US is in danger of losing its last ‘Triple A’ status

The US is in danger of losing its last ‘Triple A’ status

(ABM FN-Dow Jones) Moody’s downgraded the outlook for the US debt situation from negative due to high interest rates and doubts about the US government’s ability to implement effective fiscal policy. This was announced on Friday evening.

A negative outlook means that the US credit rating may be downgraded. Currently, the US is the only company with ‘Triple A’ status with Moody’s. Fitch Ratings downgraded the US’s top-tier credit rating to AA+ from AAA in August. S&P downgraded the rating to AAA in 2011 after the previous budget debate and has maintained the AA+ rating.

“The sharp rise in U.S. Treasury yields this year has increased pre-existing pressures on U.S. borrowing capacity. Without policy action, Moody’s expects U.S. borrowing capacity to decline further, steadily and significantly relative to other highly rated countries.” Moody’s said in a note.

Commenting on the announcement, a Biden administration official said they disagreed with Moody’s warning.

“While Moody’s report maintains America’s AAA rating, we disagree with the move to a negative outlook. The U.S. economy remains strong and Treasury bills are the safest and most liquid asset in the world,” said Under Secretary of State Wally Adeyemo. In a statement.

According to Moody’s, if policymakers in Washington fail to address growing fiscal challenges in the medium term, the US credit rating could be downgraded.

Source: ABM Financial News

ABM Financial News is a supplier of stock market news, video and data, real-time trading platforms and dealing rooms, and online and offline media publications. The information in this article does not constitute professional investment advice or a recommendation to make specific investments.

See also  Smoke Alarm, Italian four most polluted cities in Europe