U.S. outlook raised by Moody's

  @AaronSmithCNN July 19, 2013: 6:58 AM ET
NEW YORK (CNNMoney)

America is pulling out of its economic malaise, slowly but surely, according to the Moody's Investors Service rating agency.

Moody's has raised its outlook on U.S. debt to stable, shedding the negative outlook that it has maintained for nearly two years.

The move reflects a decline in the U.S. budget deficit, which is expected to continue to shrink over the next few years, in conjunction with a moderately improving U.S. economy, Moody's said in its report released late Thursday.

Moody's also affirmed its top rating -- Aaa -- for the U.S. government, noting that the nation's "debt trajectory is on track to meet the criteria laid out in August 2011 for a return to stable outlook."

Related: Detroit files for bankruptcy

The rating agency referred to an estimate from the Congressional Budget Office that the budget deficit for the 2013 fiscal year is expected to decline to 4% of GDP from its 2012 level of 7%.

The U.S. gross domestic product rose at a 1.8% annual rate during the first quarter of the year, which is anemic, but still positive.

To top of page



Join the Conversation
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.26%4.48%
15 yr fixed3.30%3.31%
5/1 ARM3.30%3.35%
30 yr refi4.25%4.45%
15 yr refi3.29%3.34%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.