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
-
VAST calls for urgent policy overhaul as air pollution kills thousands in Ghana
19 minutes -
Outcome to The Drama: 10 of the best films to watch this April
24 minutes -
Britain led the fight to end slavery; we shouldn’t be paying for a crime we helped eradicate – Kemi Badenoch
44 minutes -
“Who should compensate whom?” – Afenyo-Markin sparks heated Parliamentary debate over slavery reparations
1 hour -
Iran strikes injure US troops at Saudi base
1 hour -
NPP deploys regional heavyweights to oversee polling station and electoral area polls
2 hours -
Akufo-Addo to lead ECOWAS election observers for Benin’s high-stakes presidential transition
3 hours -
Iran war splits older and younger conservatives – as pressure builds for Trump to find exit ramp
3 hours -
Callistus Mahama writes on slavery reparation: ‘We cannot confuse participation with responsibility’
3 hours -
‘The gravest crime against humanity’: What does the UN vote on slavery mean?
4 hours -
Catholic Bishops back Mahama after US university rescinds honorary degree over LGBTQ stance
4 hours -
Ablakwa expresses disappointment over US ‘no’ vote on the UN Slavery Resolution
5 hours -
Luxury watches and cash theft: Joy Sports Editor Fentuo details what happened at the Black Stars camp before the Austria game
6 hours -
India grants ‘penalty-free’ exit window for overstayed Ghanaian nationals
6 hours -
Panic selling sweeps GSE: Market cap sheds GH¢44billion in two days
6 hours
