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
-
Erasmus+ exposure can help cut youth unemployment – Ashanti region NSS director
3 minutes -
When Fear Becomes Content: The Ebo Noah Prophecy and the Question of Accountability
8 minutes -
Salaga South MP launches support scheme for women, students and youth
13 minutes -
2 killed in police shooting during Abosso galamsey protest
17 minutes -
Port of Tema dismisses claims of strike and operational disruptions
46 minutes -
Concerned Small-Scale Miners laud Sammy Gyamfi’s leadership at Goldbod
51 minutes -
Prince Amoako Jnr reflects on impact after successful PAJ Foundation tournament
1 hour -
A day of love and hope for orphans: All set for Nhyira Aboodoo
1 hour -
Water’s whisper gone silent: Are Ghana’s cities ready for the thirsty future?
1 hour -
Police apprehend serial burglar hiding in bank ceiling after festive crime spree
1 hour -
Police arrest 23-year-old man for allegedly murdering father in Oti Region
2 hours -
ICGC-Jesus Temple fêtes patients at Eastern Regional Hospital
2 hours -
Seidu Agongo builds lifeline facility for Ghana Police Hospital’s ‘Unknown Patients’
2 hours -
Ghana ‘scandalised’ by rising job losses under NDC – Dr Adomako Kissi
2 hours -
De Mayor Foundation supports over 700 widows and vulnerable persons in Adeiso
3 hours
