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A new Moody's report said "the United States'....>

US
US: A new Moody's report said "the United States' (Aaa stable) debt
affordability is set to weaken due to a range of factors, including rising
entitlement spending, increasing debt-servicing costs and potential tax reform."
(Report however did not announce a credit rtg action.)
- It said "proportions of govt revenue and GDP dedicated to general govt's
interest payments are main indicators that determine debt affordability and
overall fiscal strength in reserve currency sovereigns like the US. The US
stands out for having the least affordable debt burden among Aaa-rated
sovereigns and G7 countries based on Moody's projections" of 2017
interest-to-revenue ratio, "due to a combination of generally higher debt
levels, higher average nominal cost of government debt and lower general
government revenues as a share of GDP."
- Co-author Sarah Carlson said "metrics are set to further erode amid rising
interest costs from the normalization in Tsy yields, which worsen affordability
due to the maturity profile and level of government debt." She said "medium-term
interest rates" are "expected to nearly double over the next 5 years." 

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