China's Dagong Global Credit Rating Group, one of the country's most prominent ratings firms, on Tuesday cut the local and foreign currency sovereign ratings of the United States.

The company has rated the US nine times since 2010, and the rating has slipped from AA in 2010 to BBB+ this year. The company said the tax cuts recently passed in the US will only exacerbate an inability of the government to repay its debts. An expected slower growth of fiscal revenue coupled with rising defense and infrastructure demands, as well as rigid spending habits, will all harm repayment capacity, according to the agency.