US loses last perfect credit rating amid rising debt
Summary
The US has lost its last top-tier credit rating from Moody's, which lowered the rating from 'AAA' to 'Aa1' due to concerns about rising government debt and interest costs. This downgrade indicates that the US is less financially reliable than before, although it still holds strong economic qualities.Key Facts
- Moody's downgraded the US credit rating from 'AAA' to 'Aa1'.
- A 'AAA' rating means a country is very reliable in paying its debts.
- The downgrade is due to rising government debt and interest costs.
- Moody's had given the US a 'AAA' rating since 1917.
- A lower credit rating can lead to higher borrowing costs for a country.
- The US still has strengths like a large economy and the global role of the US dollar.
- Moody's expects US federal debt to rise to 134% of GDP by 2035.
- GDP is the total value of all goods and services produced in a country.
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