Moody’s lifts US rating to ‘stable’

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Moody’s has lifted its assessment of the US’s credit rating on the back of falling budget arrears

The ratings agency has upgraded its forecast from negative to stable as it confirmed the US’s AAA rating.

In a statement the institution said: “The US budget deficits have been declining and are expected to continue to decline over the next few years.

“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.

”Therefore, the US government’s debt-to-GDP ratio through 2018 will demonstrate a more pronounced decline than Moody’s had anticipated when it assigned the negative outlook.”

Currently forecasts for the US, including the prediction from the IMF put GDP growth “close to the long-term average for the decades before the financial crisis”.

In 2011 Moody’s cut its outlook on US rating to negative from stable.