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on tuesday, september 24, the moody's team, which downgraded the outlook of the united states' aaa highest sovereign credit rating from "stable" to "negative" last year, issued another research report warning that without substantial debt reduction measures, the united states will lose its only aaa rating among the world's three major rating agencies.

william foster, senior vice president of moody's, said that the new us government after the november presidential election must deal with the problem of widening budget deficits. if corrective measures are not taken, the debt situation will become increasingly unsustainable and will not be consistent with the aaa rating:

“the u.s. government’s tax and spending policies will affect the size of future budget deficits and the extent of the expected decline in u.s. fiscal strength, which could have significant implications for the u.s. sovereign credit profile.”

“the u.s. government’s tax and spending policies will affect the size of future budget deficits and the extent of the expected decline in u.s. fiscal strength, which could have significant implications for the u.s. sovereign credit profile.”

he also said that moody's is waiting to see how the new u.s. congress and the white house will consolidate the u.s. fiscal situation next year after the election before making a decision on the outlook for the u.s. sovereign debt rating:

"because in the long run, if fiscal policy cannot cope with the growing deficit, then the aaa rating will face increasing pressure. therefore, fiscal policy is the top priority, which is why we pay close attention to the fiscal policy response to the deficit problem."