Moody’s has stripped the US of its top-notch triple-A credit rating as it warned about rising levels of government debt and a widening budget deficit in the world’s biggest economy.
The agency on Friday afternoon cut its credit rating on the US by one notch to Aa1 from Aaa, while its outlook was changed to stable from negative. Fitch and S&P, the other main agencies, had previously removed the US’s pristine rating.
The move by Moody’s comes as investors are growing increasingly concerned about the US’s fiscal trajectory. President Donald Trump’s Republican party is pursuing a budget bill that is widely expected to increase debt significantly over the next decade.