A Chinese credit rating agency, Dagong Global, says it will cut the U.S.' credit rating, and adjust its outlook to negative.

As the world's largest economy struggles to recover from the crisis, many believe it could implement further easing measures. Doubts over the U.S.'s ability to repay debt is the main factor in Dagong's decision. It says the Fed's second round of quantitative easing only serves to release US debt pressures temporarily. They warn the move could damage the U.S. dollar and national credit.

Guan Jianzhong, President of Dagong Global Credit Rating said "I think the reason for the U.S. government depreciating its currency is because the country has nearly lost its ability to repay debt. So the government is taking this action to cut debt. That will hurt the interest of debt holders."