Moody’s Downgrades US Credit Rating to Aa1 Amid Rising Debt Concerns

The credit rating agency Moody’s has downgraded the United States’ credit rating from Aaa to Aa1 with a stable outlook, citing the increasing U.S. debt and the cost for the federal budget. “Successive U.S. governments and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and rising borrowing costs,” Moody’s noted. The agency further emphasized concerns regarding the tax cuts promoted by President Donald Trump: “We do not believe that spending cuts and deficit reduction can be achieved with the budget bill currently under discussion,” it stated.