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Moody's issued a report on the U.S Debt structure saying America's stable credit profile is likely to face downward pressure in the long-term due to "meaningful" fiscal deterioration and a widening Federal budget deficit.

Debt Ratings

US economic strength and it's integral role in global capital markets counterbalance a deteriorating fiscal position. They added the US economy's rich resource endowment, high income levels, relatively supportive demographics among other trends underpin economic strength. So in essense they are saying the bacdrop is strong.

After S&P took away America's AAA rating (equivalent of Aaa on Moodys scale) after the GFC Moody's said it would not downgrade the U.S. as long as it does not default. They said it would not remove its AAA-rating even if the government were to skip or delay payments on its non-debt obligations. The market has seen this with sceptism as S&P was sued not long after they doengraded the US and Moddy's was not for miss marking Subprime debt.

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