First cut does not get ringing endorsement from rating agency
- Expects that some unfunded tax cuts will ultimately be implemented,, which is likely to bring forward the weakening in US fiscal strength
- Future direction of US credit profile will rest mainly on evolution of fiscal strength, largely determined by trends in federal deficits, debt
- On US budget proposals says 'expenditure cuts proposed by the White House would be politically challenging to pass into law'
- If US budget were to be implemented in its current form, US fiscal position would not improve
- Overall US budget proposals significance lies in absence of indication of how longer-term fiscal, vulnerabilities will be addressed
- US budgets ten-year forecasts for major streams of tax revenue are at odds with historical record in the policies that administration has advocated
- Budget proposals relies largely on cuts to medicaid, non retirement social security benefits. This approach unlikely to yield deficit reduction goals
