Moody’s Ratings Downgrades United States Ratings To Aa1 From Aaa; Changes Outlook to Stable

Moody’s Ratings Downgrades United States Ratings To Aa1 From Aaa; Changes Outlook to Stable

On May 16, Moody’s Ratings downgraded the U.S. credit rating, citing an inability of the nation to address large and growing deficits. This downgrade means that for the first time ever, all three major credit ratings agencies have downgraded U.S. credit below their top rating. Moody’s warning comes as lawmakers are considering budget reconciliation legislation that would make America’s fiscal situation significantly worse.

The new report from Moody’s downgrades the U.S. credit rating from the top level of Aaa (negative) to Aa1 (stable). In its announcement, Moody’s stated the following primary reasons for doing so:

• Growing debt caused by increased federal spending and reduced revenues from tax cuts. Moody’s includes the assumption that extension of the 2017 TCJA provisions will add $4 trillion to the debt over the next decade. 

Follow link to read more from The Peter G. Peterson Foundation. Moody’s Downgrades U.S. Credit Rating, Warns Recent Policy Decisions Will Worsen Fiscal Outlook