Moody's Strips U.S. of Last AAA Credit Rating
On May 16, 2026, Moody's downgraded the U.S. government's long-term credit rating from Aaa to Aa1, becoming the last of the three major credit agencies to strip the U.S. of its top-tier rating (following S&P in 2011 and Fitch in 2023). Moody's cited over a decade of growing federal deficits, rising debt-to-GDP projections reaching 134% by 2035, and repeated failures by successive administrations and Congress to address the fiscal trajectory. The downgrade came as Congress debated the "One Big Beautiful Bill" reconciliation package, sending the 30-year Treasury yield surging past 5%.
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Moody's