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Moody’s Dims Credit Outlook For Federal Government

  • The last of the Big Three credit-rating agencies to keep the federal government’s credit at AAA has put lawmakers on notice.
  • Moody’s Investors Service gave the federal government a negative outlook citing large deficits, high interest rates and waning political interest in addressing the nation’s deficit.
  • “The key driver of the outlook change to negative is Moody’s assessment that the downside risks to the US’ fiscal strength have increased and may no longer be fully offset by the sovereign’s unique credit strengths,” the authors wrote of the decision.
  • Moody’s also made it clear it has less faith in lawmakers to fix things.
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