US growth likely to fall long term - Moody's

Moody's out with a note on the USA

• Growth likely to trend downward long-term, implying long term rise in debt burden
• Sees real GDP around 2.8% in 2015 & 2016
• Growth to decline after 2016
• Sees long-term baseline growth of 2.3% over next 15years, lower that 3.7% through 1992-2007 period
• Labour intensive growth model will become less sustainable, slower rise in labour input will be biggest drag on growth

On the ratings front;

"While the debt metrics could deteriorate due to slower growth, it would not necessarily render the government's credit profile incompatible with its current rating in the next few years. Higher debt levels, however, would increase the vulnerability of the US to potential shocks in the longer term, putting pressure on the country's credit profile in the decade of the 2020s," says Moody's Senior Vice President Steven Hess

Full report can be found here (h/t Livesquawk)