Moody's downgrades US credit rating due to rising debt

Rising debt and no concrete plans to reduce government spending are the primary drivers behind the reduced credit assessment for the US.

Moody's credit rating agency downgraded the credit rating of the United States government from Aaa to Aa1, citing the rising national debt as the primary driver behind the reduction in creditworthiness.

According to the May 16 announcement from the rating agency, US lawmakers have failed to stem annual deficits or reduce spending over the years, leading to a growing national debt. The rating agency wrote:

The credit downgrade is only one degree out of the 21-notch rating scale used by the company to assess the credit health of an entity.

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