Two major credit rating agencies are concerned over the United States' credit rating, saying the U.S. must do something about its fiscal situation or face the fallout.
According to the Wall Street Journal, Moody's and Standard & Poor's Corp. are both "expressing concern over a deteriorating fiscal situation that they say needs correction."
"We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase," Sarah Carlson, senior analyst at Moody's, told the WSJ.
"The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar" to fund its deficits, Carol Sirou, head of S&P France, added at a Paris conference Thursday. "But that may change. We can't rule out changing the outlook" on America's debt rating in the future, she warned.
Currently, both agencies triple-A rating with a stable outlook, says the WSJ.
But "No triple-A rating is forever," Sirou said.