The United States has lost its final perfect credit rating, as Moody’s downgraded the country’s rating from ‘AAA’ to ‘Aa1’, citing rising deficits and mounting interest costs.
Moody’s, which had maintained the US’s top-tier credit rating since 1917, said repeated failures by successive administrations to address long-term fiscal challenges prompted the downgrade.
A ‘AAA’ rating reflects the highest level of creditworthiness, signaling a strong ability to repay debt. With this move, all three major credit rating agencies—Moody’s, Fitch, and S\&P Global—have now downgraded the US. Fitch cut its rating in 2023, while S\&P did so in 2011. (Newswire)