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16.01.2018

Chinese agency Dagong downgraded the US rating

Chinese rating agency Dagong Global Credit Rating announced the reduction of the sovereign credit rating of the US in foreign and national currency from "A-" to "BBB +" with a negative outlook.

According to analysts Dagong, in the US "deterioration of the sources of repayment of the federal government's debts continues, and this trend will be further aggravated by the large-scale tax cuts."

"Increasing dependence on the debt model of economic development will continue to undermine the solvency of the federal government," the agency is confident, Interfax reports.

Among the reasons for the deterioration of the rating, analysts called shortcomings in the current US policy, hampering the effective management of the federal government.

The agency predicts that the growth of US GDP in 2018 will be only 2,3% and will continue to slow down in subsequent years.

As reported by the newspaper VZGLYAD, at the beginning of the US, the entire world was strained by the threat of its default after the US Treasury Secretary urged Congress to urgently raise the limit of the national debt. However, since Donald Trump has complicated relations with his own party, the procedure may become an excuse for the parliament to interfere in the powers of the president.

A source: LOOK

Author: Alina Nazarova

Tags: United States, China, Economy, Rating

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