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The United States has been stripped of its Triple-A Credit Credit of Moody’s on concerns about increasing public debt levels.
Friday afternoon, the agency reduced its credit rating to the United States to AA1 of AAA, while its prospects were changed to stable from negatives. Fitch and S&P, the other main agencies, had previously removed the virgin note from the United States.
Moody’s said that he expected federal deficits to widen almost 9% of GDP by 2035, compared to 6.4% last year, due to the increase in interest payments on debt, law expenditure and a “relatively low generation of income”.
“This demotion in one number on our scales in 21-NOTCH reflects the increase of more than a decade of public debt ratios and payment of interest at levels which are much higher than the sovereigns noted in a similar way,” wrote the agency.
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