Moody's Investors Service has warned that it may downgrade the credit rating of the United States.

Moody’s announced on Tuesday that it could downgrade the rating from Aaa to Aa1 if the U.S. fails to find a way to reduce its national debt.

The credit rating agency said results of negotiations on the 2013 budget will likely determine the direction of the U.S. rating.

Currently, Moody’s outlook on the U.S. government's bond rating remains at ‘negative.’