WASHINGTON — The credit score company Moody’s Investors Service reduced its outlook on the U.S. federalgovernment’s financialobligation on Friday to “negative” from “stable,” mentioning the expense of increasing interest rates and political polarization in Congress.
Moody’s maintained its leading triple-A credit ranking on U.S. federalgovernment financialobligation, though it is the last of the 3 significant credit ranking companies to do so. Fitch Ratings reduced its score to AA+ from AAA in August, and Standard & Poor’s reduced the U.S. in2011 A lowered outlook, nevertheless, raises the threat that Moody’s might ultimately strip its triple-A ranking from the U.S. as well.
A lower score on U.S. financialobligation might expense taxpayers if it leads debtors to need greater interest rates on Treasury expenses and notes. The yield on the 10-year Treasury hasactually increased substantially because July, from about 3.9% to 4.6% Friday, an uncommonly sharp increase.
Some market experts have stated the August Fitch downgrade might have contributed to that increa