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US Credit Rating Downgraded: Historic 'AAA' Status Ends

5/17/2025

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Summary

Story summary

Moody's downgraded the US credit rating from 'AAA' to 'Aa1' in 2023 due to increasing debt and interest costs.
This marks the end of the US's perfect credit rating, held since 1917.
The White House criticized Moody's for its timing and questioned its credibility.
Federal debt is expected to reach 134% of GDP by 2035.
The US economy shrank by 0.3% in early 2023, driven by declining government spending.

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Story summary

Moody's downgraded the US credit rating from 'AAA' to 'Aa1' in 2023 due to increasing debt and interest costs.
This marks the end of the US's perfect credit rating, held since 1917.
The White House criticized Moody's for its timing and questioned its credibility.
Federal debt is expected to reach 134% of GDP by 2035.
The US economy shrank by 0.3% in early 2023, driven by declining government spending.