Moody’s Strips U.S. Of Final Top Credit Rating

Moody’s Ratings downgraded the U.S. credit rating from Aaa to Aa1, removing the country’s last remaining top-tier credit score amid rising concern over unsustainable deficits and mounting debt, Bloomberg’s Michael Mackenzie reported.

Despite the downgrade, Moody’s shifted its outlook from negative to stable.

The downgrade follows more than a year of warnings and aligns Moody’s with Fitch and S&P Global, which have already dropped the U.S. below the coveted triple-A rating.

Moody’s cited persistent fiscal deterioration under both political parties and noted that “economic and financial strengths no longer fully counterbalance the decline in fiscal metrics.”

Despite the downgrade, Moody’s shifted its outlook from negative to stable.

The Biden administration dismissed the move as politically motivated, while Trump campaign spokesman Steven Cheung lashed out at Moody’s Analytics economist Mark Zandi on social media, accusing him of long-standing bias.