Money & The Economy

Major Credit Rating Firm Downgrades US As Country Drowns In Debt

The United States government lost its last AAA credit rating Friday evening with Moody’s Ratings downgrading the country to AA+, citing in part rising debt burdens.

“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,” Moody’s said in a statement.

Other major ratings agencies, Standard & Poor’s and Fitch Ratings, downgraded the United States to AA+ from AAA in 2011 and 2023 respectively.

The credit downgrade comes as Republican lawmakers are seeking to pass a massive tax and spending package through Congress, known as President Donald Trump’s “one big, beautiful bill.” Fiscal hawks, including Republican Texas Rep. Chip Roy and Republican Wisconsin Sen. Ron Johnson, have warned the budget package will further add to the deficit.

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Adam Pack

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