Rating Agency Dagong downgraded US

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Рейтинговое агентство Dagong снизило рейтинг США

Chinese rating Agency Dagong Global Credit Rating downgraded the sovereign credit ratings of the USA in foreign and national currency from “A-” to “BBB+”.

According to a press release from the Agency, the forecast – “negative”.

According to analysts of Dagong, the US “continues the deterioration of the repayment sources of debt obligations of the Federal government, and this trend will worsen because of massive tax cuts”.

“Increased reliance on the debt model of economic development will continue to undermine the solvency of the Federal government”, – stated in the message.

The deterioration in ratings is due, including “deficiencies in current US policy that impede the effective management of the Federal government in connection with national economic development goes the right way”.

The Agency predicts that the us GDP growth in 2018 will be only 2.3% and will continue to slow in the coming years.

Budget revenues continue to decline due to tax cuts and will fall to 14% of GDP in 2022, compared with 17.3% in the past year. The budget deficit will increase to 3.9% of GDP this year and to 4.1% in 2019.

At the end of 2017, the President of the United States Donald trump signed a law on tax reform, which involves a substantial reduction of the profit tax of corporations.

 

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