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Moody's changes US credit outlook to negative from stable amid looming shutdown

The agency cited Washington's policy as one of the reasons for making this decision, describing it as "balancing on the brink of war"

NEW YORK, November 11. /TASS/. Moody's Investors Service put the United States’ credit rating on a negative outlook on Friday, citing risks of a government shutdown.

"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability," the US credit-rating firm said in a statement.

What Moody’s said was brinkmanship in Washington has also been a contributing factor, as the ratings agency also pointed to "continued political polarization within US Congress" which may hamper work on a fiscal plan.

A compromise spending bill approved by US Congress and signed by US President Joe Biden on federal expires on November 17. Unless the legislative and executive branches of the US government agree on another similar measure, the federal government will enter a partial shutdown amid an impasse on a funding deal.