US Credit Rating Downgraded by Moody's
Moody's has lowered the United States' credit rating from triple-A to 'Aa1', citing concerns over growing federal debt and consistent deficits.
Key Factors in the Downgrade
The agency emphasized that successive US administrations have not effectively tackled the escalating debt levels. This downgrade reflects a weakened perception of the US's capacity to fulfill its financial obligations.
A triple-A rating signifies the highest level of creditworthiness.
Implications of the Downgrade
Following similar actions by Fitch Ratings and S&P Global Ratings in previous years, this downgrade suggests a broader trend in reassessing the US's financial stability. A lower credit rating typically results in increased borrowing costs for the affected country.
US Strengths Acknowledged
Moody's did acknowledge the US's economic resilience and the US dollar's continued importance as the global reserve currency. However, these strengths were deemed insufficient to offset the debt concerns.
