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Moody's downgrades U.S. credit rating, pushes it out of elite 'AAA' club

  • Moody's downgraded the United States' credit rating from AAA to Aa1 on May 16, 2025, removing its last perfect rating since 1917.
  • The downgrade followed earlier cuts by Fitch in 2023 and S&P in 2011, reflecting rising government debt and interest payments above peers.
  • Moody's highlighted the steadiness of U.S. Monetary management, largely due to the Federal Reserve's autonomy, while also pointing out governance challenges and increasing federal borrowing requirements.
  • Moody's stated the downgrade could increase interest rates and disrupt markets but affirmed the U.S. Credit outlook remains stable and near-perfect.
  • The agency expects institutional frameworks to remain resilient even if tested and sees no immediate risk of further downgrades.
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Forbes broke the news in United States on Friday, May 16, 2025.
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