For those who follow the credit rating agencies’ assessments of the United States, the past several weeks have offered mixed messages. Overall, some improvement has been noted, mostly due to the steadily improving economy and the declining deficit. Concerns remain, however, about the long-term outlook and the ability of elected leaders to raise the nation’s debt ceiling without provoking a crisis.
When Moody's Investors Services upgraded the U.S.'s credit-rating outlook from "negative" to "stable" last week, it warned that without further action in Congress, the rating could be under pressure again in the future.
Moody's observed that, "over the longer term, a rise in the fiscal deficit associate[d] with pressure on government spending from health care and Social Security could also pressure the rating if not addressed."
Nevertheless, Moody’s provided the most upbeat assessment for the U.S. of the three main agencies, which also include Fitch Ratings and Standard and Poor’s. Aside from the switch to a stable outlook, Moody’s maintained its AAA rating for the U.S..
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