MOODY reduces American credit rating, citing the height of debts

The United States has lost the last perfect credit rating, as Moody, which was expressed by Moody, has expressed its ability to pay its debts.

When lowering the United States classification from “AAA” to “AA1”, Moody noticed that successive American departments failed to reflect the deficit and interest costs.

Triple-A rating indicates the highest possible credit reliability in the country, and indicates that it is considered very good financial health with a strong ability to pay its debts.

MOODY in 2023 warned that the United States classification is at risk. Fitch Ratses reduced the US classification in 2023 and did the S & P Global Ratses in 2011. MOODY’s has obtained an ideal credit rating for the United States since 1917.

“The reduction reflects,” the increase reflects more than a decade in government debt rates and pay benefits to much higher levels of kings classified in the same. ”

In a statement, the White House said it “focuses on repairing Biden’s chaos”, while criticizing Moody’s.

“If Moody has any credibility, they will not remain silent because the financial catastrophe in the past four years has been revealed,” said MOODY spokesman.

Low credit rating means that countries are more likely to fail to pay sovereign debt, and generally face high borrowing costs.

Moody’s stressed that the United States “maintains exceptional credit power points such as size, flexibility, dynamism and the continuous role of the US dollar as the global reserve currency.”

The company said it expects to increase federal debts to about 134 % of GDP (GDP) by 2035, an increase of 98 % last year.

GDP is a measure of all economic activity of companies, governments and people in a country.

The BBC has reached the US Treasury to comment.

The classification came on the same day as Trump’s historical spending bill He suffered a setback in Congress.

The so -called “Grand and Beautiful Bill” of Trump failed to pass the House of Representatives Budget Committee, where some Republicans vote against it.

The numbers showed The American economy shrinks in the first three months of the year With government spending decreased and imports rose due to corporate race to enter the goods to the country before definitions.

The Ministry of Commerce said that the economy has contracted an annual rate of 0.3 %, which is a sharp shrinkage after 2.4 % growth in the previous quarter.