Moody’s Downgrades US Credit Rating stating rising debts

The US has lost its last Triple-A-credit score from a large rat company after being relegated by Moody’s, who has cited the growing federal debts in the past decade.

When lowering the American rating to ‘AA1’, Moody noted that successive American administrations did not turn his successful balloon and interest costs.

A triple-a rating means the highest possible credit reliability of a country and indicates that it is considered in a very good financial health with a strong capacity to repay its debts.

Moody’s warned in 2023 The US Triple-A-Rating was in danger. Fitch ratings lowered the US in 2023 and S&P Global Ratings did this in 2011.

The downgrade “reflects the increase in more than a decade in government debt and interest rate paying ratios to levels that are considerably higher than comparable sovereigns,” Moody’s said in the statement.

A lower creditworthiness means that countries are more likely to fail about their sovereign debt and are generally confronted with higher loan costs.

Moody has maintained that the US is “retaining exceptional credit strengths, such as size, resilience and dynamics and the continuous role of the US dollar as the global reserve currency”.

The BBC has contacted the US Department of Treasury for comment.

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