Credit agency Moody’s cuts outlook on US government to negative

Moody’s warned that the US’s deficits are likely to remain ‘very large’ in the face of higher interest rates. Photograph: Anadolu Agency/Getty Images

The credit ratings agency Moody’s reduced its outlook on the US government from stable to negative, citing division in Washington DC and risks to the nation’s fiscal strength.

While Moody’s maintained the US’s current top-grade AAA rating, it raised the prospect that this may be cut.