MOODY reduces the American credit classification on a constant budget deficit

Moody’s rankings announced on Friday that they were reduced American credit classification First degree due to the ongoing financial deficit that he sees is likely to deteriorate in the future.

The discount moves the US credit classification down from one score from AAA to AA1 on the MOODY rating scale. The company also changed its view of the United States from negativity to stable.

Moody’s said the classification “reflects the increase more than a decade Government debt Paying benefits are attributed to much higher levels than kings classified. “

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“The successive American administrations and Congress have failed to agree on measures to reflect the direction of the large annual financial deficit and the increasing interest costs,” the company explained. “We do not believe that the multiple discounts of the year in spending and mandatory deficit will result from the current financial proposals.”

Moody added that he believes that the financial view of the federal government is exacerbated in the coming years, with Spending on entitlement programs Like medical care and social security, it continues to rise amid the aging of the United States and interest rates on the rise of debt due to the high interest rates and the expansion of the deficit.

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“Over the next decade, we expect a greater deficit as spending in spending has increased while government revenues are still widely flat. In turn, the ongoing financial deficit will motivate the government’s burden on interest. The financial performance of the United States is likely to deteriorate.

Although it reduced the American credit rating by one, MOODY also changed its view from “negative” to “stable” in conjunction with this step, explaining that it reflects “balanced risks” in the AA1 layer.

“The United States maintains an exceptional credit force such as the size, flexibility, dynamics of its economy and role US dollar The company has also clarified the global reserve currency, “In addition, while recent months are characterized by the uncertainty in politics, we expect the United States to continue its long history in very effective monetary policy led by an independent federal reserve.”

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The classification reduction comes as president Donald Trump The Passing Tax Bill failed to clarify a major procedural obstacle on Friday, as the militant Republicans demanding deeper discounts on spending this measure on a rare political setback of the Republican President in Congress.

These pieces follow a reduction through his opponent Fitch, who in August 2023 also cut the American sovereign classification by one, pointing to the expected financial deterioration and the repetition of debt roof negotiations that threaten the government’s ability to push its bills.

Reuters contributed to this report