Moody’s credit rating lowers US rating, citing increasing debt

The United States has lost its last Triple credit rating to a major rating company after being reduced by Moody’s, which cited the growing federal debt in the last decade.

By reducing the US rating to AA1, Moody noted that consistent US administrations failed to turn the balloon deficit and interest costs.

Triple rating means the highest reliability of the country’s credit reliability and shows that it is considered to be in very good financial health with a strong capacity to pay off its debts.

I warned Moody in 2023. Triple rating in the United States was at risk. Fitch Ratings lowered the United States in 2023 and S&P Global Ratings did so in 2011

The reduction “reflects the increase for more than a decade in government debt and interest rates to levels, which are significantly higher than such rated sovereign,” Moody’s said in the statement.

A lower credit rating means that the parties are more likely to default on their government debt and are generally facing higher loan costs.

Moody’s maintains that the United States “retains exceptional credit strengths in size, sustainability and dynamism and the continuous role of the US dollar as a global reserve currency.”

The BBC addressed the US Department of Finance for comment.

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