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
-
Saturday showdown: OSP powers and new health policy to dominate Prime Insight
36 minutes -
Enimil Ashon: A Ghanaian would’ve taken NDC/NPP flag to space
59 minutes -
‘Help enlist me into police service’ – Suspect in alleged armoured vehicle theft pleads in court
1 hour -
Carrick leaves door open for Rashford return
2 hours -
A moment of risk and opportunity: How two ceasefires could boost US-Iran talks
3 hours -
We’re bleeding, not gov’t – Oil marketers calls for suspension of statutory taxes and levies
3 hours -
GFA seals partnership deal with X1 to power Black Stars and Division One League Super Cup
3 hours -
Final decision in marriage must rest with couple, not family – Kweku Frimpong
4 hours -
Media must lead coordinated fight against misinformation – REMAPSEN at One Health Summit
4 hours -
Ghana deepens migration partnership as Interior Minister recieves EU-IOM equipment for NADMO
4 hours -
Cioaba Aristica Aduana future uncertain over family issues – CEO Atta Poku
5 hours -
HAC-CER named Best Ulcer Product of the Year
5 hours -
Nations FC reach first-ever FA Cup final with win over Aduana
6 hours -
Accra to hold National Sanitation Day clean-up on April 18
6 hours -
Judicial decisions should be guided by law, “common sense” – Afenyo-Markin tells judges
6 hours