Moody’s strips US of last triple-A rating

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On Friday, the United States lost its last triple-A credit rating by a large agency when Moody cited the rising level of government debt and presented a blow to Donald Trump’s economic power and prosperity.

The reduction from AAA to AA1 increases bad news for the US president, the same day his flagship spending bill failed to pass key votes in Congress due to opposition to several Republican financial hawks.

Explaining its decision, the rating agency noted that “the increase in government loans and interest payments in proportion to more than a decade is significantly higher than a similar classified sovereignty.”

Moody has warned that he expects federal deficit to expand by about nine percent of economic output by 2035, which was more than 6.4 percent last year, “mainly driven by interest payments, rising costs, and relatively low -income production.”

As a result, it expects that by 2035 last year, the burden of federal loans will increase by about 134 % of the gross domestic product (GDP) by 2035.

The White House has taken X to push back, with communications director Steven Cheong criticizing Moody’s analytics, Mark Zandi’s chief economist.

Chewing posted, “No one takes his ‘analysis’ seriously. He has proved wrong again and again.

‘Financial House is not in order’

Moody’s decision to lower the United States with its high credit rating is a mirror of two other major US rating agencies, S&P and Fitch.

The S&P reduced its ranking for the United States in 2011, citing its concerns, “referring to the concerns about the government’s concerns about the loan management plan to strengthen the dynamics of medium -term loans.”

Twelve years later, Fitch followed it, a warning of “a steady in governance standards in the last 20 years, including financial and debt issues.”

“The US administration and the Congress have failed to agree on measures to change the major annual fiscal deficit and rising interest costs,” Moody said in a statement, Moody said in his decision on Friday.

He added, “We do not believe that the current financial proposals will result in the mandatory costs and the deficit in the deficit,” he added, adding that it is expected to continue in the next decade.

Moody said that America’s “financial performance is likely to deteriorate compared to its past and compared to other highly highly autonomous autonomy.”

Republican Congress member French Hill, who heads the House Financial Services Committee, Moody’s Down Grade “is a strong reminder that our country’s financial home is not in order.”

He said, “The House Republican” is committed to restoring financial stability, solving our debt structural drivers and taking steps to promote the economic environment of development. “

Democrat Brandon Boyle, who ranked in the House Budget Committee, said that the down grade “is a direct warning: our financial approach is deteriorating, and the House Republican is determined to make it worse.”

“The question is, are the Republicans ready to awaken their losses?”

Moody’s decision has come between Congress in the midst of a tough fight to approve Trump’s “big, beautiful” spending bill, which aims to play at least partially through deep deductions in the Medicated Health Insurance Program, covering more than 70 million less income.

On Friday, the agency also turned its view from “negative” to “stable”, and saying that despite dealing with the growing level of state debt in the United States, the country maintains “extraordinary credit powers, such as its economy, flexibility and dynamics.”