Sat, 17 May 2025

Sat, 17 May 2025 US loses last perfect credit rating amid rising debt

Moody's said successive US administrations had failed to reverse ballooning deficits and interest costs.

* A lower credit rating increases the likelihood of default on sovereign debt and higher borrowing costs.
* Moody's cited rising government debt and interest payments over more than a decade as reason for the downgrade.
* The rating was lowered to 'Aa1', a still high but not perfect rating.
* US federal debt is expected to reach 134% of GDP by 2035, up from 98% last year.
* Moody's noted that the US retains credit strengths such as size and resilience.
* The White House responded to the downgrade with criticism of Moody's for past inaction.
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