11:16 - 19.05.2025

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May 19, Fineko/abc.az. Moody's Ratings has downgraded the long-term credit rating of the U.S. to Aa1 from Aaa amid concerns about the growing government debt and budget deficit.

ABC.AZ informs that thus, Moody's was the last of the "big three" rating agencies to deprive the world's largest economy of its highest rating. This was previously done by S&P Global Ratings and Fitch Ratings.

The outlook for the rating has been changed from "negative" to "stable".

"We recognize the significant economic and financial strength of the U.S., but we believe that these advantages no longer fully offset the deterioration in fiscal performance," Moody's says in a press release.

The annual deficit of the U.S. federal budget is almost $2 trillion, or over 6% of U.S.’ GDP. According to the Congressional Budget Office (CBO), the national debt could reach 107% of GDP by 2029, becoming a record since the end of World War II.

Moody's decision to downgrade the U.S. rating has drawn criticism from the administration of President Donald Trump. For example, White House Communications Director Stephen Chung singled out Mark Zandi from Moody's Analytics, although this division does not belong to Moody's Ratings.