Moody’s downgrades US credit standing citing rising debt | EUROtoday

The US has misplaced its final triple-A credit score rating from a significant scores agency after being downgraded by Moody’s, which cited rising federal debt over the previous decade.

In decreasing the US score to ‘Aa1’, Moody’s famous that successive US administrations had did not reverse ballooning deficits and curiosity prices.

A triple-A score signifies a rustic’s highest attainable credit score reliability, and signifies it’s thought-about to be in superb monetary well being with a powerful capability to repay its money owed.

Moody’s warned in 2023 the US triple-A score was in danger. Fitch Ratings downgraded the US in 2023 and S&P Global Ratings did so in 2011.

The downgrade “reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s mentioned within the assertion.

A decrease credit standing means international locations usually tend to default on their sovereign debt, and customarily face increased borrowing prices.

Moody’s maintained that the US “retains exceptional credit strengths such as size, resilience and dynamism and the continued role of the US dollar as the global reserve currency”.

The BBC has reached out to the US Department of Treasury for remark.

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