Moody's Downgrades US Credit Rating Over Debt, Deficit Concerns

Moody’s Ratings downgraded the United States’ long-term credit rating from Aaa to Aa1 and shifted its outlook from “negative” to “stable,” according to Benzinga. The move stripped the U.S. of its last remaining top-tier rating among the three major credit agencies. Moody’s cited a prolonged rise in government debt and interest payments, with projections showing the U.S. debt-to-GDP ratio climbing from nearly 100% in 2025 to 130% by 2035. The agency also criticized persistent fiscal deficits and a lack of political consensus to address mandatory spending. While Moody’s acknowledged the U.S. maintains considerable economic strength, it said these assets no longer offset the country’s deteriorating fiscal health. The downgrade followed similar actions by Fitch and S&P Global.