{"id":5241,"date":"2025-05-16T19:49:01","date_gmt":"2025-05-17T02:49:01","guid":{"rendered":"https:\/\/abovecloud.xyz\/?p=5241"},"modified":"2025-05-19T19:49:24","modified_gmt":"2025-05-20T02:49:24","slug":"moodys-downgrades-us-credit-rating","status":"publish","type":"post","link":"https:\/\/abovecloud.xyz\/?p=5241","title":{"rendered":"Moody\u2019s downgrades US credit rating"},"content":{"rendered":"\n

The Moody\u2019s ratings agency downgraded U.S. creditworthiness Friday from the triple-A category to double-A, as Republicans work to pass a massive bill to cut taxes and spending that would add nearly $4 trillion to the federal deficit.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Moody\u2019s dropped the U.S. rating from its \u201cAaa\u201d category to \u201cAa1\u201d on concerns over increased debts and interest payments that need to be paid by the federal government.

The downgrade reflects an increase \u201cin government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,\u201d the agency said in a Friday release.<\/p>\n\n\n\n

Moody\u2019s has not previously taken a downgrade rating action on US sovereign debt, a representative for the agency told The Hill.<\/p>\n\n\n\n

The move follows a negative outlook from Moody\u2019s on the U.S. Aaa rating made in November 2023.

It also follows a similar downgrade by ratings agency Fitch in 2023 that came in the wake of a precarious standoff over the debt ceiling between Democrats and Republicans in Congress that nearly saw the U.S. default on its debts.<\/p>\n\n\n\n

Fitch dropped its own ranking in that year, citing an \u201cerosion of governance.\u201d<\/p>\n\n\n\n

\u201cThe rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to
\u2018AA\u2019 and \u2018AAA\u2019 rated peers over the last two decades,\u201d analysts for Fitch wrote in 2023.

Like Fitch, Moody\u2019s said its downgrade takes the previous decade of U.S. fiscal conditions into account.<\/p>\n\n\n\n

\u201cOver the next decade, Moody\u2019s anticipates federal deficits will widen, reaching nearly 9 percent of GDP [gross domestic product] by 2035, up from 6.4 percent in 2024, driven mainly by increased interest payments on debt, entitlement spending, and relatively low revenue generation,\u201d analysts for Moody\u2019s wrote Friday.<\/p>\n\n\n\n

The massive Republican package making its way through Congress now centers on an extension of\u00a0President Trump\u2019s\u00a0<\/a>2017 tax cuts. The package is anticipated to add more than $3.8 trillion to the deficit over the next nine years.

Democrats in Congress have asked for an official estimate from the Joint Committee on Taxation that would look at the next 10 years, within which window the cost of the bill could be more than $4 trillion.<\/p>\n\n\n\n

Extension of the individual tax cut rates will cost about $2.2 trillion, according to the joint committee.<\/p>\n\n\n\n

Senate Minority Leader\u00a0Chuck Schumer\u00a0<\/a>(D-N.Y.) said the ratings drop \u201cshoudl be a wake-up call to Trump and Congressional Republicans.\u201d

\u201cSadly, I am not holding my breath \u2013 today\u2019s\u00a0GOP simply does not care about deficits or our nation\u2019s fiscal health. Republicans are hell-bent on\u00a0a multi-trillion tax cut for the ultra-wealthy, leading to nothing but higher prices, more debt, and fewer jobs,\u201d he said in a statement.

Reprinted from The Hill<\/p>\n","protected":false},"excerpt":{"rendered":"

The Moody\u2019s ratings agency downgraded U.S. creditworthi […]<\/p>\n","protected":false},"author":3,"featured_media":5242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[4748,4744,4746],"class_list":["post-5241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-usa","tag-category","tag-moody","tag-rating"],"yoast_head":"\nMoody\u2019s downgrades US credit rating - abovecloud<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/abovecloud.xyz\/?p=5241\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Moody\u2019s downgrades US credit rating - abovecloud\" \/>\n<meta property=\"og:description\" content=\"The Moody\u2019s ratings agency downgraded U.S. creditworthi […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/abovecloud.xyz\/?p=5241\" \/>\n<meta property=\"og:site_name\" content=\"abovecloud\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-17T02:49:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-20T02:49:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2025\/05\/image-12-1024x576.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u4f5c\u8005\" \/>\n\t<meta name=\"twitter:data1\" content=\"TSOC\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 \u5206\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/abovecloud.xyz\/#website\",\"url\":\"https:\/\/abovecloud.xyz\/\",\"name\":\"abovecloud\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/abovecloud.xyz\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"zh-Hans\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"zh-Hans\",\"@id\":\"https:\/\/abovecloud.xyz\/?p=5241#primaryimage\",\"url\":\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2025\/05\/image-12.png\",\"contentUrl\":\"https:\/\/abovecloud.xyz\/wp-content\/uploads\/2025\/05\/image-12.png\",\"width\":1920,\"height\":1080},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/abovecloud.xyz\/?p=5241#webpage\",\"url\":\"https:\/\/abovecloud.xyz\/?p=5241\",\"name\":\"Moody\u2019s downgrades US credit rating - 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