Moody's Investor Services affirmed the United States' credit rating of AAA. The main reason for the affirmation was a shrinking budget deficit. It has also upgraded the nation's outlook for government debt to stable. Previously, government debt was on a negative value, with a possibility of a downgrade.
"The US budget deficits have been declining and are expected to continue to decline over the next few years," said Moody Thursday. "Furthermore, the growth of the US economy, which, while moderate, is currently progressing at a faster rate compared with several AAA peers and has demonstrated a degree of resilience to major reductions in the growth of government spending," added Moody.
From US$1.1 trillion in 2012, the Congressional Budget Office placed the estimated 2013 federal budget deficit at US$642 billion. A 4% decrease would be the result of such a reduction. This was greater than anticipated in 2011 when Moody gave the US a negative outlook.
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