S&P and Moody’s voice concerns about US rating
RATINGS agencies Moody’s and Standard & Poor’s warned yesterday that the United States’ AAA credit rating could face a downgrade if its debt ratio fails to right itself.
Sarah Carlson, a senior analyst at Moody’s, said in a report “If [the US] are not offsetting measures to reverse the deterioration in negative fundamentals, the likelihood of a negative outlook over the next two years will increase”.
Meanwhile, S&P’s head of France, Carol Sirou, said at a conference that the agency couldn’t rule out changing its outlook on the US if the market begins to turn on the dollar, given its current fiscal problems.
Both however stressed that the US, along with France, Germany and the UK, have stable outlooks on the back of their current debt arrangements.