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The US was stripped of its last top credit rating by Moody’s Ratings, reflecting deepening concern that ballooning debt and deficits will damage America’s standing as the preeminent destination for global capital and increase the government’s borrowing costs.
Moody’s lowered the US credit score to Aa1 from Aaa on Friday, joining Fitch Ratings and S&P Global Ratings in grading the world’s biggest economy below the top, triple-A position. The one-notch cut comes more than a year after Moody’s changed its outlook on the US rating to negative. The credit assessor now has a stable outlook.
“While we recognize the US’ significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics,” Moody’s wrote in a statement. Moody’s blamed successive administrations and Congress for swelling budget deficits that it said show little sign of abating. On Friday lawmakers in Washington continued to work towards a massive tax-and-spending bill that’s expected to add trillions to the federal debt over the coming years.
Today's show features:
- Bloomberg News Rates Reporter Michael Mackenzie on Bond market reaction to Moody's Downgrade
- Nick Wadhams, Bloomberg National Security Team Leader, on Trump Says Ukraine, Russia to Start Ceasefire Talks Immediately
- Mark Gurman, Bloomberg News Managing Editor for Global Consumer Tech, on Bloomberg Big take story: Apple Is Spending Billions and Still Hasn't Managed to Crack AI
- and we Drive to the Close with Ryan Detrick, Chief Market Strategist at the Carson Group
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