Moody's cuts United States sovereign outlook to Negative from Stable; Affirms AAA rating
- Downside risks to US fiscal strength have increased and may no longer be fully offset by the sovereign's unique credit strengths
- US fiscal deficits remain very large- Debt affordability to be significantly weakened, steadily and significantly, to very weak levels v other highly-rated sovereigns
- US long-term local and foreign currency country ceilings remain unchanged at AAA
- Absent policy action globally fiscal strength will decline
- Political polarization exacerbates fiscal risks that govt might not be able to reach consensus on fiscal plan to slow decline in debt affordability
- Affirmation of AAA ratings reflects Moody's view that the US formidable credit strengths continue to preserve the sovereign's credit profile
- Considers US to have significantlhigher capacity to carry a larger debt burden than other sovereigns globally