Moody's downgrades US credit rating outlook to negative
17:30
Moody's Investors Service downgraded the outlook on the US credit rating from stable to negative on Monday, citing large fiscal deficits and rising borrowing costs, Reuters reported.
The negative outlook means that there is a possibility that the rating could be lowered in the near future. Earlier this year, Fitch Ratings also downgraded the US credit rating.
Moody's said that the US government's fiscal position is "weaker than in the past" and that the country's debt-to-GDP ratio is "likely to continue to rise." The agency also noted that the Federal Reserve's efforts to combat inflation are likely to lead to higher interest rates, which will make it more expensive for the government to borrow money.
