Moody's threatens USA with withdrawal of top credit rating
The US rating agency Moody's could soon remove its previous top rating for the United States. The outlook for the country has been changed from "stable" to "negative", the agency announced late Friday evening (CET). The previous top rating of "AAA" was confirmed once again.
The main reason given by Moody's for the measure was that the downside risk to the financial strength of the USA had increased. In an environment of rising interest rates without effective measures to reduce government spending or increase revenues, the US deficit is likely to remain very high, it added. This is likely to significantly weaken the affordability of debt.
Moody's is currently the only one of the three major rating agencies that still gives the USA the highest rating. Fitch and S&P see the United States as one notch below the top rating, but each with a stable outlook.
Despite the ongoing high US deficit, the government has yet to implement significant measures to reduce spending or increase revenues, which could put a strain on household finances as interest rates rise and debt affordability weakens. In light of these financial challenges, it's crucial for families to closely monitor their household budgets and financial plans.
Source: www.dpa.com
