Audio By Carbonatix
The US has lost its last triple-A credit score from a major ratings firm after being downgraded by Moody's, which cited growing federal debt over the past decade.
In lowering the US rating to 'Aa1', Moody's noted that successive US administrations had failed to reverse ballooning deficits and interest costs.
A triple-A rating signifies a country's highest possible credit reliability, and indicates it is considered to be in very good financial health with a strong capacity to repay its debts.
Moody's warned in 2023 the US triple-A rating was at risk. Fitch Ratings downgraded the US in 2023 and S&P Global Ratings did so in 2011.
The downgrade "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," Moody's said in the statement.
A lower credit rating means countries are more likely to default on their sovereign debt, and generally face higher borrowing costs.
Moody's maintained that the US "retains exceptional credit strengths such as size, resilience and dynamism and the continued role of the US dollar as the global reserve currency".
The BBC has reached out to the US Department of Treasury for comment.
Latest Stories
-
What gold and copper tell us about the new logic of mining investment in Africa
22 minutes -
BoG revises directive on Net Open Position limits
25 minutes -
They think we’ve stolen their cocoa – LBCs blame payment delays for farmer anger
31 minutes -
FIDC Africa Infrastructure Conference 2026 launched in Accra
40 minutes -
$185m unpaid – LBCs say Cocobod owes them for two seasons
53 minutes -
We’ve pre-financed cocoa for 7 years – LBCs say banks are owed more than farmers
1 hour -
Blue Water Guards, NAIMOS, IMCIM… but rivers still poisoned – John Awuah slams galamsey fight
2 hours -
Airport rename debate while rivers die? – John Awuah blasts CSOs
2 hours -
Britney Spears sells rights to entire music catalogue
2 hours -
Ex-police chief said Trump told him in 2006 ‘everyone’ knew of Epstein’s behaviour
3 hours -
Pilot praised after crash-landing faulty Somali passenger plane on seashore
3 hours -
Haaland puts ‘pressure on himself’ to help team
3 hours -
Snoop Dogg to attend Swansea game for first time
3 hours -
Toughest season I’ve had as manager ‘by a mile’ – Slot
3 hours -
CSOs have lost their moral voice – John Awuah tears into galamsey ‘noise’
6 hours
