The latest from the major rating agencies Moody's Ratings is unexpected for everyone
downgraded the credit rating of the United States. What is important to understand is that this has happened for the first time since 1917.
Points of attention
- Moody's decision is based on the increase in public debt and interest payment ratios, forecasting growing borrowing needs that could negatively impact the US economy.
- The downgrade underscores the importance of maintaining sound fiscal policies and addressing economic challenges to regain a higher credit rating in the future.
The US is losing ground again
Analysts believe that this unexpected decision by Moody's could really shake up financial markets and push interest rates higher.
This will likely create an additional financial burden for US citizens.
It is worth noting that of the three largest credit rating agencies, Moody's was the only one to hold back, maintaining its highest US debt rating at AAA.
Moody's has maintained a flawless credit rating for the United States since 1917. It now rates the US creditworthiness one notch lower, at Aa1. Two other rating agencies, Fitch Ratings and S&P, lowered their credit ratings on US debt in 2023 and 2011, respectively.
Prior to this decision, the agency pushed the increase in public debt and interest payment ratios to levels that are significantly higher than those of sovereign countries with a similar rating.
In addition, Moody's forecast that the United States' borrowing needs will continue to grow.
Analysts believe this will have a negative impact on the US economy as a whole.
More on the topic
- Category
- Economics
- Publication date
- Додати до обраного
