This is the first time since 1917 that the US has lost its highest level of credit, raising concerns about the risk of bankruptcy this summer.
RT reported that in its announcement on May 16, Moody's - one of the three "big guys" in global credit ratings - frankly pointed out: "The US government's debt ratio and interest cost have been climbing steadily for more than a decade, far exceeding the countries at the same ranking".
Moody's also criticized the continued stalemate of future US governments in curbing budget deficits and rising debt costs, despite prolonged warnings from experts.
With this move, Moody's officially "comes in unison" with Fitch (lowered to US AAA from August 2023) and S&P (lowered from 2011). Thus, all three of the world's largest credit rating organizations no longer consider the US as a "perfect financial example".
The decline comes just weeks after US Treasury Secretary Scott Bessent warned of a possible US bankruptcy in August if it did not quickly raise the public debt ceiling - which has now reached the 36.1 trillion USD threshold since January.
The US government has used special measures such as temporarily suspending contributions to the federal employee pension fund to maintain cash flow. However, these measures are only temporary and are gradually fading away from effectiveness.
Meanwhile, President Donald Trump continues to call for the entire removal of debt ceilings, saying that it is only psychologically effective and there is no point in continuously raising them.
Under President Joe Biden, the debt ceiling has been raised three times. Now, the Trump administration must clear up fiscal consequences, according to White House spokesman Kush Desai, who did not hesitate to attack that if Moodys had been truly reputable, they would not have remained silent over the past four poor fiscal years.
With the US officially having its credit rating dropped by all three "big guys", the global financial market may soon feel the widespread impact such as rising interest rates, more expensive borrowing costs and concerns about bankruptcy spreading across the markets.
