When prominent ratings agency Moody’s voiced concerns about the government’s capacity to repay its debt, the US lost its final flawless credit rating. Moody’s lowered the US rating from ‘AAA’ to ‘Aa1’, pointing out that the US has failed to address increasing deficits and borrowing expenses under consecutive administrations.
A triple-A rating indicates the greatest possible credit reliability. It also shows that a nation is thought to be in excellent financial condition and has a strong ability to pay back its obligations.
In 2023, Moody’s issued a warning that the US triple-A rating was in jeopardy. In 2011, S&P Global Ratings downgraded the US; in 2023, Fitch Ratings did the same. Since 1917, Moody’s has maintained a flawless credit rating for the United States.
According to Moody, the downgrading “reflects the increase over more than a decade in government debt and interest payment ratios to levels significantly higher than similarly rated sovereigns,” the agency said.
Aiming Moody’s, the White House stated that it was “focused on fixing Biden’s mess. According to White House spokesperson Kush Desai, “Moody’s would not have remained silent as the fiscal disaster of the past four years unfolded if they had any credibility. Countries with lower credit ratings are typically more expensive to borrow money from and are likelier to default on their sovereign debt.
Also Read:
Empowering Global Access Of High-Tech and Educational Services With Baxet Group: Anton Pankratov
