Moody's, credit rating
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Years of rising deficits and budget chaos finally caught up with the U.S. credit rating Friday when Moody’s Investor Service downgraded the government, stripping its last triple-A rating.
Even before talk of fresh unfunded tax cuts took center stage in the budget wrangling on Capitol Hill, US bond investors were making their views loud and clear: If the government keeps spending more than it takes in,
Moody's has joined the two other rating agencies in determining that the US is no longer fit to hold a AAA credit score.
The decision could impact financial markets, raise interest rates, and highlight fiscal challenges for the U.S. government.
Moody's cuts the U.S. credit rating to AA+, aligning with S&P and Fitch. Economists say markets remain unfazed, despite rising debt concerns.
Moody’s MCO adjustment to the U.S. government’s credit rating was from Aaa to Aa1, a notch down on the firm’s 21-notch rating scale. The firm cited the increase in government debt over the past 10 years,