BERNARD DROTSCHIE: Moody’s downgrade is bad news for US creditworthiness
The US must demonstrate a commitment to stabilising debt levels, either through spending cuts or revenue increases
25 May 2025 - 09:00
Moody’s recent downgrade of the US’s sovereign credit rating from Aaa to Aa1 underscores mounting concerns over fiscal sustainability.
Historically, such a downgrade signals deteriorating debt dynamics, raising questions about a nation’s ability to service its obligations without excessive reliance on external financing. While the US retains its status as the world’s reserve currency, the downgrade amplifies anxieties surrounding long-term investor confidence and the trajectory of global capital flows...
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