Moody's changes outlook on USA soverign ranking to negative, affirms Aaa-rating

<p>Fitch and S&amp;P have already downgraded the US and now Moody's has taken a step in that direction. The credit ratings agency maintained the USA's top Aaa rating but changed its outlook to 'negative'.</p><ul><li>Downside risks to the US' fiscal strengths have increased and may no longer be fully offset by the sovereign unique credit strengths</li><li>Expects that the US' fiscal deficits will remain very larger, significantly weakening debt affordability</li><li>Sees US debt affordability to decline further, steadily and significantly, to very weak levels vs other highly-rated sovereigns</li><li>Political polarization in Congres raises risk successive govt not able to reach consensus on plan to slow decline in debt affordability</li><li>US can carry a higher debt burden than other countries</li></ul><p>The current US funding package goes until November 17 (next Friday) and I strongly suspect that will underscore some of the concerns from Moody's.</p>

This article was written by Adam Button at www.forexlive.com.