BEIJING: China’s Dagong Global Credit Rating Co, among the country’s most prominent ratings agencies, said on Tuesday that it had cut the local and foreign currency sovereign ratings of the United States to BBB+ from A-.

The ratings have also been put on a negative outlook, Dagong said in a statement.

The increasing reliance on the debt-driven mode of economic development will continue to erode the solvency of the US federal government, the ratings agency said.

“Deficiencies in the current US political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said.

Reuters