Moody's downgrades US government debt outlook to negative

Higher for longer rates

Credit ratings agency Moody’s has downgraded its outlook for US government debt from stable to negative, as interest rates remain higher for longer and a government shutdown looms.

"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 agency said. While Moody's said it expects the country to "retain its exceptional economic strength" and maintained its Aaa rating, it raised the prospect that this could be cut. US economy 'finally showing signs of cracks' with lacklustre October jobs numbers The agency pointed to the "sharp rise" in US Treasury bond yields, which is increasing pressure on US debt...