Moody’s was downgraded to the degradation of the long -term credit ratings of the United States on Friday, while changing the prospects for the US economy to “stable” from “negative”.

As the evaluation firm notes, the downgrade by one grade on the 21 -step rating scale reflects the increase in more than decade, public debt indicators and interest payments to levels significantly higher than those of states with similar evaluation.

Moody’s notes that successive US and Congress governments have failed to agree to measures to reversed the trend course of large annual fiscal deficits and increasing interest costs.

As he points out, the current fiscal proposals are not expected to lead to substantial reductions in compulsory spending and deficits in the coming years.

Indeed, in the next decade, he expects larger deficits as he estimates that allowances will continue to grow, while public revenue will remain unchanged.

In turn, the persistent, large budget deficits will drive the debt and burden of interest that the government is required to pay at higher levels, he notes and adds that US fiscal return is likely to worsen in relation to the past and compared to other states.

At the same time, he stresses that the steady perspectives reflect the balanced risks to the country’s credit rating.

As the US notes, they have excellent advantages, such as size, durability and dynamics of their economy and the role of the dollar as a global reserve currency.

In addition, while the recent months have been characterized by a degree of political uncertainty, he estimates that the US will continue the long history of very effective monetary policy, led by an independent federal bank.

Stable perspectives also take into account institutional characteristics, including the constitutional separation of powers between the three branches of the government, which contributes to the effectiveness of politics over time and is relatively unaffected by events in the short term.

While these institutional characteristics may be tested at times, he estimates that they will remain strong and durable.