Analysts at global rating firm, Moody's have said that actions taken by the White House and Capitol Hill to address the issue of large federal debt will determine the ratings for the US economy.

Analysts at Moody's Investors Service said that the actions taken by the authorities to reduce debt will determine the company will change its ratings outlook for U. S. government debt. The current rating is AAA with a `negative' outlook.

They said that if the White House and Capitol Hill are able to come up with policies to stabilize the then result in a downward trend in debt then the agency might consider changing the outlook to "stable" while keeping the rating at AAA. The government should aim at reducing the ratio of federal debt to gross domestic product in the medium term.

Moody's has also warned that it might have to downgrade the US from its triple A credit rating if Congress does not reach a deficit reduction deal. The agency warned that the top notch credit rating might be taken away from the country in the face of a lack of a debt reduction process.