China’s credit rating agency Dagong downgradedsovereign credit rating of the United States by one notch from A- to BBB+ on Tuesday, as debt repayment capacity is expected to continue to deteriorate with its massive tax cuts plan.

The company hasgiven sovereign credit rating to the US nine times since 2010, and the rating has slipped from AA in 2010 to BBB+ this year.

“The perennialnegative impactof the superstructure on the economic base has continued to deteriorate the debtrepaymentsourcesof the federalgovernment, and this trend willbe further exacerbated by the government's massivetax cuts,”Dagong Global Credit Company said, after the US voted to pass the tax cut plan in November.

Expected slower growth of fiscal revenue and rising demand for national defense, infrastructure and rigid spending willput higher downward pressure on the government’s repayment capacity, according to the agency.

It is estimated that ratio of fiscal revenue-to-debt of the federal government will be 14.9percentand 14.2percentin 2018 and 2019 respectively, and the ratio will deteriorate to 12.1 percent in 2022, the agency said.