The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

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Citing large and growing budget deficits and rising interest costs, Moody’s Analytics on Friday reduced its credit rating on U.S. government debt, eliminating the last top-ranked, triple-A rating for the nation’s debt among the three major credit agencies.