Moody’s downgrades US credit rating

[mystery-ak]

 Moody’s downgrades US credit rating
by Tobias Burns - 05/16/25 5:39 PM ET

The Moody’s ratings agency downgraded U.S. creditworthiness Friday from the triple-A category to double-A, as Republicans work to pass a massive bill to cut taxes and spending that would add nearly $4 trillion to the federal deficit.

Moody’s dropped the U.S. rating from its “Aaa” category to “Aa1” on concerns over increased debts and interest payments that need to be paid by the federal government.

The downgrade reflects an increase “in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” the agency said in a Friday release.

Moody’s has not previously taken a downgrade rating action on US sovereign debt, a representative for the agency told The Hill.

The move follows a negative outlook from Moody’s on the U.S. Aaa rating made in November 2023.

It also follows a similar downgrade by ratings agency Fitch in 2023 that came in the wake of a precarious standoff over the debt ceiling between Democrats and Republicans in Congress that nearly saw the U.S. default on its debts.

more
https://thehill.com/business/5304902-moodys-downgrades-us-credit-rating/

[Hoodat]

Moody’s downgrades US credit rating
by Tobias Burns - 05/16/25 5:39 PM ET

The Moody’s ratings agency downgraded U.S. creditworthiness Friday from the triple-A category to double-A, as Republicans work to pass a massive bill to cut taxes and spending that would add nearly $4 trillion to the federal deficit.

I call BS.

[Wingnut]

They downgraded it before.  This is not like the 1st time.

[DefiantMassRINO]

Add nearly $4 trillion to the Federal Deficit or to the Federal Debt?

The Federal Deficit is for a Fiscal Year.

The Federal Debt is the treasure chest full of $30+ trillion of US Government IOU's.

A $4 trillion Federal Deficit is a crime against solvency.  That would be more than a 10% increase in the Federal Debt in one year.  What kind of Republicans are these?



These poseur tools will call me RINO for opposing their President's obscene budget, just like the Bush '43 crew.

[Hoodat]

Add nearly $4 trillion to the Federal Deficit or to the Federal Debt?

The Federal Deficit is for a Fiscal Year.

The Federal Debt is the treasure chest full of $30+ trillion of US Government IOU's.

A $4 trillion Federal Deficit is a crime against solvency.  That would be more than a 10% increase in the Federal Debt in one year.  What kind of Republicans are these?

I highly suggest that you read the article.  It is nothing more than a political hit piece filled with bullshit.  Here's an example:

“Over the next decade, Moody’s anticipates federal deficits will widen, reaching nearly 9 percent of GDP [gross domestic product] by 2035, up from 6.4 percent in 2024, driven mainly by increased interest payments on debt, entitlement spending, and relatively low revenue generation,” analysts for Moody’s wrote Friday.

By 2035?  This same statement could have been made last year.  Or the year before.  So why now?  And why base this action on predictions ten years into the future?  Fitch has kept silent on massive annual deficits for the last 17 years.  But now with Republicans taking control of government for the first time in over two decades, they suddenly want to make projections about interest payments ten years from now?

Bit there's more:

“The massive Republican package making its way through Congress now centers on an extension of President Trump’s 2017 tax cuts. The package is anticipated to add more than $3.8 trillion to the deficit over the next nine years.

And there it is.  Republicans are to blame.  Forget the $8+ billion Biden added to our total debt in just four years.  All that matters now is a Republican tax cut package that will only keep things as they are.  In other words, keeping tax rates right where they've been through four years of Biden has now become the pinnacle of recklessness in 2025.  And does the author even know the difference between 'deficit' and 'debt'?

[mountaineer]

They downgraded it before.  This is not like the 1st time.

Tandy
@dantypo
Everyone acting like this is the first time US credit has been downgraded.
Know when the last time was?
August 1st, 2023.
I don’t remember the media asking Biden voters if he should resign.
The double standards are getting quite impressive.
3:29 PM · May 17, 2025

[IsailedawayfromFR]

I highly suggest that you read the article.  It is nothing more than a political hit piece filled with bullshit. 

Another BS about the situation is Moody's itself,

It still heavily promotes ESG so it will most likely downgrade any countries or companies that pass on not using ESG.

https://www.moodys.com/web/en/us/esgview.html

[LMAO]

Another BS about the situation is Moody's itself,

It still heavily promotes ESG so it will most likely downgrade any countries or companies that pass on not using ESG.

https://www.moodys.com/web/en/us/esgview.html

Yet promotion of ESG is not mentioned by Moody’s as the reason for their downgrade

https://ratings.moodys.com/ratings-news/443154

[IsailedawayfromFR]

Yet promotion of ESG is not mentioned by Moody’s as the reason for their downgrade

https://ratings.moodys.com/ratings-news/443154

Yet Moody's still supports ESG and actually makes lots of money due to it.

Gee, no bias at all, eh?

[Smokin Joe]

@Hoodat

Forget the $8+ billion Biden added to our total debt in just four years.

I think you meant Trillion, not Billion.


That curve jumped like a swing state Biden vote count...