Moody's downgrades US credit rating, citing rising debt

Bailey Schulz, USA TODAY

Fri, May 16, 2025, 3:40 PM 1 min read

Moody’s has downgraded the nation’s recognition standing 1 notch from Aaa to Aa1, leaving the U.S. authorities without a apical people among immoderate of the major standing agencies.

The bureau cited rising indebtedness and involvement outgo ratios that are “significantly higher than likewise rated sovereigns.”

“Successive U.S. administrations and Congress person failed to hold connected measures to reverse the inclination of ample yearly fiscal deficits and increasing involvement costs,” Moody’s said successful a Friday quality release. “The U.S.'s fiscal show is apt to deteriorate comparative to its ain past and compared to different highly-rated sovereigns.”

The power comes aft Fitch Ratings downgraded the federation to AA+ from AAA successful 2023. Standard & Poor’s downgraded the nation’s recognition standing successful 2011.

Lower recognition ratings tin rise Treasury enslaved involvement rates, which tin propulsion up rates connected everything from mortgages to firm bonds, arsenic previously reported by USA TODAY.

This nonfiction primitively appeared connected USA TODAY: Moody's cuts US recognition rating, citing rising debt