Moody’s lowers US credit rating with reference to debt growth

The United States has lost its latest triple credit score from a major rating firm after the Moody’s decrease, which has been referring to the growth of federal debt in recent decades.

By reducing the US rating to AA1, Moody’s noted that consistent US administrations were unable to change the balloon deficit and interest costs.

The triple rating means the maximum reliability of the country’s loan and shows that it is considered a very good financial health with great potential to repay their debts.

Moody’s warned in 2023 a triple rating in the United States at risk. The Fitch rating lowered the US in 2023, and Global Ratings S&P did it in 2011.

The lowering “reflects an increase in more than a decade in the public debt ratio and interest payments to the level, which are much higher than the same sovereignty,” Moody’s said.

A lower loan rating means that countries are most likely default by their sovereign debt and usually face higher borrowing costs.

Moody’s claimed that the US “retains exceptional lending forces, such as size, stability and dynamism and the constant role of the US dollar as a world reserve currency.”

The BBC appealed to the US Treasury to comment.

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