America's Credit Score Takes a Hit: The End of an Era for Perfect Ratings

Moody’s Ratings downgraded the United States’ debt on Friday, ending its decades-long AAA credit rating. This shift may unsettle financial markets, potentially increasing interest rates and placing further strain on Americans facing tariffs and inflation. Moody’s, the last major agency to uphold a pristine rating since 1917, now classifies US creditworthiness at Aa1, joining Fitch and S&P, which had already downgraded US debt in 2023 and 2011, respectively. This decision stemmed from rising government debt and interest payment ratios exceeding those of similarly rated nations. Moody's highlights a stable outlook, fueled by a historically effective independent Federal Reserve, despite current political divisions. The agency noted that reducing spending or boosting revenue could restore the country's AAA rating.