BRIEF-Moody's Affirms United States' Aaa Rating; Maintains Stable Outlook

BY Reuters | CORPORATE | 06/24/22 04:55 PM EDT

June 24 (Reuters) - Moody's:

* MOODY'S AFFIRMS UNITED STATES' AAA RATING; MAINTAINS STABLE OUTLOOK

* MOODY'S SAYS IT EXPECTS THE U.S. ECONOMY AND THE SOVEREIGN'S CREDIT PROFILE TO REMAIN RESILIENT TO SHOCKS

* MOODY'S SAYS UNITED STATES' RATING AFFIRMATION DRIVEN BY VIEW THAT THE U.S. IS EMERGING FROM THE PANDEMIC SHOCK WITH ITS CREDIT STRENGTHS INTACT

* MOODY'S SAYS RISKS TO THE U.S. ECONOMY HAVE MATERIALLY INCREASED AND COULD LEAD TO A SHARPER THAN EXPECTED SLOWDOWN, OR POTENTIALLY A RECESSION

* MOODY'S SAYS STRONG POLICY RESPONSE TO PANDEMIC SUPPORTED A VERY SWIFT & EARLY RECOVERY THAT AVOIDED ECONOMIC SCARRING AND DEMONSTRATED U.S. GOVERNMENT'S CAPACITY TO MANAGE SHOCKS

* MOODY'S SAYS U.S.' LONG-TERM LOCAL- AND FOREIGN-CURRENCY COUNTRY CEILINGS REMAIN UNCHANGED AT AAA

* MOODY'S SAYS OUTLOOK REFLECTS VIEW THAT DIVERSITY, DYNAMISM, AND COMPETITIVENESS OF U.S. ECONOMY WILL OFFSET FISCAL PRESSURES AND ECONOMIC SLOWDOWN

* MOODY'S SAYS IT EXPECTS U.S. DEFICITS TO GRADUALLY WIDEN OVER THE LONGER TERM TO AROUND 7% OF GDP AND DEBT BURDEN TO RISE TO ABOUT 113% OF GDP BY 2032 Source text for Eikon:

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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