The international credit rating agency Moody’s has changed its outlook for the U.S. credit rating from negative to stable, while also confirming its top AAA rating, European media reported on Friday.
Among the main reasons for the improved outlook, Moody’s highlights the reduction of the budget deficit, as reported by the British BBC. The agency states in its rationale that the U.S. economy is growing at a higher rate compared to several other economies of the same rank with a top ‘triple A’ rating and shows a certain resilience to a more pronounced slowdown in budgetary spending growth.
Moody’s expects further reduction of the deficit in the U.S. budget in the coming years. According to the Congressional Budget Office, the budget deficit is likely to decrease to four percent of gross domestic product (GDP) in the fiscal year 2013, down from seven percent in 2012.
The agency notes that such a decline in the deficit is greater than they had expected in 2011 when they downgraded the U.S. outlook from stable to negative. Last month, the credit rating agency Standard & Poor’s (S&P) also improved its outlook for the U.S. credit rating, raising it from negative to stable.
In August 2011, S&P downgraded the U.S. rating by one level, from AAA to AA+, while Moody’s maintained the U.S. top AAA rating.
