Moody’s Downgrades U.S. Credit Rating Amid Rising Debt Concerns

Moody’s Investors Service has downgraded the United States’ sovereign credit rating from Aaa to Aa1, citing concerns over the country’s growing debt burden and rising interest costs. This marks the first time Moody’s has lowered the U.S. rating, aligning it with previous downgrades by Standard & Poor’s (2011) and Fitch Ratings (2023). The downgrade reflects …

What’s going on in the U.S. bond market?

The U.S. bond market is experiencing some turbulence due to rising Treasury yields and concerns over government debt. Investors are demanding higher yields because they’re worried about the GOP’s tax-cut plans, which could lead to increased borrowing and a larger deficit. Additionally, the recent Trump tax bill has caused Treasury bond yields to surge, as …

Fitch downgrades U.S. credit rating to AA+ over fiscal concerns

Must try harder The U.S. has lost its top credit rating from Fitch Ratings, one of the three major credit rating agencies, due to its recent political gridlock over the debt ceiling and deteriorating fiscal situation. How much does this matter? Fitch re-calculated the U.S.’s long-term foreign-currency issuer default rating (IDR) from AAA to AA+ …