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Fitch and S&P have already downgraded the US and now Moody’s has taken a step in that route. The credit score scores company maintained the USA’s prime Aaa score however modified its outlook to ‘destructive’.
Draw back dangers to the US’ fiscal strengths have elevated and should now not be absolutely offset by the sovereign distinctive credit score strengthsExpects that the US’ fiscal deficits will stay very bigger, considerably weakening debt affordabilitySees US debt affordability to say no additional, steadily and considerably, to very weak ranges vs different highly-rated sovereignsPolitical polarization in Congres raises danger successive govt not capable of attain consensus on plan to sluggish decline in debt affordabilityUS can carry the next debt burden than different international locations
The present US funding package deal goes till November 17 (subsequent Friday) and I strongly suspect that can underscore a number of the considerations from Moody’s.
This text was written by Adam Button at www.forexlive.com.
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