Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Tsunami waves reach Hawaii, calls for emergency measures to protect lives and property.
NHK: Japan records 1.3-meter tsunami.
Russian mayor of northern Kuril Islands says 'everyone' on tsunami-hit islands evacuated.
Israeli media: Take-offs and landings halted at Ben Gurion Airport.
Israeli media: Air raid sirens sound in the central region after a missile was identified from Yemen.
Al Mayadeen's correspondent: 3 families were wiped out from the civil registry due to the occupation's massacre in Nuseirat
Al Mayadeen's correspondent: 14 women and 12 children were killed in the Israeli occupation's massacre in the new camp in Nuseirat, central Gaza Strip
10-year-old Palestinian child Nour Abu Sala'a was killed by malnutrition due to the Israeli occupation's siege on the Gaza Strip
Trump says a ceasefire in Gaza is 'possible'
European Union commissioners will discuss a proposal to partially suspend Israeli participation in the EU's Horizon research program: Reuters

Moody’s downgrades US credit rating amid fiscal concerns

  • By Al Mayadeen English
  • Source: Agencies
  • 17 May 2025 12:57
3 Min Read

The Trump administration has rejected Moody's move, accusing the agency of political bias and selective criticism.

Listen
  • x
  • US President Donald Trump speaks with reporters as he signs an executive order in the Oval Office of the White House, Friday, May 9, 2025, in Washington. (AP)
    US President Donald Trump speaks with reporters as he signs an executive order in the Oval Office of the White House, on Friday, May 9, 2025, in Washington (AP)

Moody’s Investors Service has downgraded the United States’ long-term issuer and senior unsecured ratings from AAA to Aa1, citing persistent fiscal challenges and rising debt levels. The agency also revised the country’s outlook from negative to stable.

“This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” Moody’s stated. The agency emphasized that the US fiscal trajectory continues to deteriorate, both "compared to its own past" and "compared to other highly-rated sovereigns."

Looking ahead, Moody’s projects the federal deficit will expand to nearly 9% of GDP by 2035, up from 6.4% in 2024. This growth is expected to be driven by increasing interest obligations, rising entitlement spending, and limited revenue expansion. The US debt-to-GDP ratio is also forecast to climb to 134% by 2035, a sharp increase from 98% in 2024.

Despite the downgrade, Moody’s noted that the long-term prospects of the US economy remain intact, even though near-term growth may slow.

Trump administration slams downgrade as politically motivated

Related News

Europe slams Trump trade deal as humiliating concession

Civicus adds US to watchlist over declining civic freedoms

The rating cut triggered swift backlash from President Donald Trump’s administration. White House spokesperson Kush Desai dismissed Moody’s decision as inconsistent and politically selective.

“If Moody’s had any credibility, they would not have stayed silent as the fiscal disaster of the past four years unfolded,” Desai told CBC News. He added that the Trump administration is committed to reversing the trend through aggressive fiscal reforms, including what he called “The One, Big, Beautiful Bill to get our house back in order.”

Communications Director Steven Cheung also questioned the impartiality of Moody’s chief economist, Mark Zandi.

“An Obama advisor and Clinton donor who has been a Never Trumper since 2016,” Cheung said. “Nobody takes his ‘analysis’ seriously. He has been proven wrong time and time again.”

Moody’s remains one of the world’s top credit rating agencies, and its assessments carry considerable weight in global financial markets. A downgrade can lead to increased borrowing costs for the government, affect investor confidence, and potentially influence monetary policy decisions.

While the agency acknowledged that US economic fundamentals remain strong, it warned that without structural reforms to entitlement programs and debt management, fiscal vulnerabilities could continue to grow in the long term.

Read more: Trump signals new US tariffs, warns trading partners of imminent hikes

  • United States
  • US credit rating
  • Moody's
  • fiscal concerns

Most Read

Given ample indications Epstein was collating sexual blackmail material on powerful figures for intelligence agencies, comments made by Mirage's cofounder to Ynet take on a chilling character. (Al Mayadeen English; Illustrated by Batoul Chamas)

Zionist spies innovate AI sexual blackmail tech

  • Analysis
  • 27 Jul 2025
The right wing love affair with Zionism has ended

The right wing love affair with Zionism has ended

  • Opinion
  • 23 Jul 2025
Houthi supporters display a giant Palestinian flag during a weekly anti-US and anti-'Israel' rally in Sanaa, Yemen, Friday March, 28, 2025 (AP)

Open borders so Yemenis march by hundreds of thousands: Al-Houthi

  • Politics
  • 24 Jul 2025
Lebanese Freedom Fighter Georges Abdallah, who was serving a life in Paris, speaks to supporters upon his arrival at Beirut's Rafik Hariri International Airport in Beirut, Lebanon, Friday, July 25, 2025 (AP)

With resistance, road home is never lost: Georges Abdallah from Beirut

  • Politics
  • 25 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Lawmakers attend a session of the Knesset, Israel's parliament, in occupied al-Quds, Monday, July 14, 2025 (AP)
Politics

Tensions erupt between Smotrich and army chief over Gaza strategy

The spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, giving a statement on Tuesday, July 29, 2025 (Yemeni Military Media)
Politics

Yemen targets Ben Gurion Airport in defense of Gaza

Israeli Foreign Minister Gideon Sa'ar arrives for the EU-Southern Neighbourhood ministerial meeting at the EU Council building in Brussels, Monday, July 14, 2025. (AP)
Politics

'Israel' summons Dutch ambassador over Amsterdam's ban on ministers

Palestinians collect aid that landed in the Mediterranean Sea after being airdropped over central Gaza, at the shore of Zawaida, Gaza Strip, Tuesday, July 29, 2025 (AP)
Politics

Israeli plans to annex Gaza illegal under international law: Norway

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS