WASHINGTON — The creditworthiness of the U.S. federal government hinges on the outcome of budget negotiations in 2013 between the newly re-elected Barack Obama and the still divided Congress, a new report said.

Moody’s Investors Services warned in a 44-page report on Monday that they will downgrade the U.S. government to Aa1 from Aaa negative if budget negotiations fail to produce policies that “lead to debt stabilization and ultimately reduction.”

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