The US is losing ground again

Analysts believe that this unexpected decision by Moody's could really shake up financial markets and push interest rates higher.

This will likely create an additional financial burden for US citizens.

It is worth noting that of the three largest credit rating agencies, Moody's was the only one to hold back, maintaining its highest US debt rating at AAA.

Moody's has maintained a flawless credit rating for the United States since 1917. It now rates the US creditworthiness one notch lower, at Aa1. Two other rating agencies, Fitch Ratings and S&P, lowered their credit ratings on US debt in 2023 and 2011, respectively.

Prior to this decision, the agency pushed the increase in public debt and interest payment ratios to levels that are significantly higher than those of sovereign countries with a similar rating.

In addition, Moody's forecast that the United States' borrowing needs will continue to grow.