https://sputnikglobe.com/20250517/moodys-downgrades-us-credit-rating-1122069674.html
Moody's Downgrades US Credit Rating
Moody's Downgrades US Credit Rating
Sputnik International
The Moody's rating agency said on Friday that it has downgraded the long-term issuer and senior unsecured ratings of the United States government from AAA to AA1 and changed the outlook from stable to negative.
2025-05-17T03:59+0000
2025-05-17T03:59+0000
2025-05-17T04:30+0000
economy
us
us debt
moody's
credit rating
gdp
debt to gdp ratio
https://cdn1.img.sputnikglobe.com/img/07e6/05/04/1095272424_0:321:3071:2048_1920x0_80_0_0_567714ac57b74db48660415d8f7574c6.jpg
"Moody's Ratings (Moody's) has downgraded the Government of United States of America's (US) long-term issuer and senior unsecured ratings to Aa1 from Aaa and changed the outlook to stable from negative. This one-notch downgrade on our 21-notch rating scale 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," the agency said in a statement.It added that the US' fiscal performance is likely to deteriorate compared to its own past and "compared to other highly-rated sovereigns.""As a result, we expect federal deficits to widen, reaching nearly 9% of GDP by 2035, up from 6.4% in 2024, driven mainly by increased interest payments on debt, rising entitlement spending, and relatively low revenue generation. We anticipate that the federal debt burden will rise to about 134% of GDP by 2035, compared to 98% in 2024," the statement read, adding that the long-term growth of the US' GDP is not expected to be affected despite its likely slowing in the short term.The agency thus joined the other two "Big Three" agencies in doing so - S&P and Fitch.
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2025
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
moody's us credit rating, us credit rating, is us aaa in credit ratings, big three us rating
moody's us credit rating, us credit rating, is us aaa in credit ratings, big three us rating
Moody's Downgrades US Credit Rating
03:59 GMT 17.05.2025 (Updated: 04:30 GMT 17.05.2025) The Moody's rating agency said on Friday that it has downgraded the long-term issuer and senior unsecured ratings of the United States government from AAA to AA1 and changed the outlook from stable to negative.
"Moody's Ratings (Moody's) has downgraded the Government of United States of America's (US) long-term issuer and senior unsecured ratings to Aa1 from Aaa and changed the outlook to stable from negative. This one-notch downgrade on our 21-notch rating scale 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," the agency said in a statement.
It added that the US' fiscal performance is likely to deteriorate compared to its own past and "compared to other highly-rated sovereigns."
"As a result, we expect federal deficits to widen, reaching nearly 9% of GDP by 2035, up from 6.4% in 2024, driven mainly by increased interest payments on debt, rising entitlement spending, and relatively low revenue generation. We anticipate that the federal debt burden will rise to about 134% of GDP by 2035, compared to 98% in 2024," the statement read, adding that the long-term growth of the US' GDP is not expected to be affected despite its likely slowing in the short term.
The agency thus joined the other two "Big Three" agencies in doing so - S&P and Fitch.
