Moody's cuts U.S outlook to negative

Moody's Investors Service Inc signage is displayed outside of the company's headquarters in New York, U.S. [Getty Images]

Rating agency Moody's Investors Service on Friday downgraded its outlook on the U.S government to "negative" from "stable," citing the rising risks to the nation's large fiscal deficits and declining debt affordability.

"Continued political polarization within U.S. Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability," Moody's said in a statement, as Congress faces the looming threat of a government shutdown once again.