Moody's changes outlook on United States' ratings to negative from stable

Moody's changes outlook on United States' ratings to negative from stable.

The rating agency expressed concerns about the persistently large fiscal deficits in the U.S., anticipating a substantial weakening of debt affordability.

William Foster, a senior credit officer at Moody's, highlighted increased downside risks to the country's fiscal strength that may no longer be fully counterbalanced by its unique credit strengths.

The White House attributed the outlook change to "congressional Republican extremism and dysfunction," while the Deputy Secretary of the Treasury emphasized the strength of the American economy and the prominence of Treasury securities in global markets.

Fitch Ratings and S&P Global Ratings had previously downgraded the U.S. sovereign rating, with Fitch at AA+ and S&P at AA+.