Moody’s downgrades U.S. ratings to Aa1 from Aaa, citing deficits

Moody’s Ratings Service cuts the U.S. long-term issuer and senior unsecured ratings to Aa1 from Aaa, citing the trend of large annual fiscal deficits and growing interest costs. Moody’s has also changed the outlook on the U.S. to stable from negative. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” the agency said. Moody’s expects larger deficits over the next decade, it added.