US loses last major 'AAA' credit rating with Moody's downgrade

Agency cites rising debt and growing interest costs

20250516N US national debt

An electronic sign and a poster display at a bus shelter in Washington show the U.S. national debt at $36 trillion in December. © Reuters

(Reuters) -- Moody's on Friday downgraded its credit rating of the United States by a notch to "AA1" from "AAA," citing rising debt and interest "that are significantly higher than similarly rated sovereigns."

"Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," Moody's said.

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