Moody’s says US fiscal strength on course for continued decline

The U.S. flag is seen on a building on Wall St. in the financial district in New York

NEW YORK (Reuters) – Ratings agency Moody’s said on Tuesday the United States’ fiscal strength is on track for a continued multi-year decline as budget deficits widen and debt becomes less affordable.

The agency said in a report the country’s fiscal health deteriorated further since Moody’s lowered its outlook on the U.S. triple-A rating in November 2023.

“Even in a very positive and low probability economic and financial scenario, debt affordability remains materially weaker than for other Aaa-rated and highly rated sovereigns,” Moody’s said.

(Reporting by Davide Barbuscia)