Fri May 23 09:53:24 UTC 2025: Here’s a summary of the provided text, followed by a rewritten version as a news article:

**Summary:**

The United States has lost its last remaining ‘AAA’ credit rating after Moody’s downgraded the nation’s creditworthiness, joining S&P and Fitch. This is attributed to the country’s ballooning $36 trillion debt, driven by persistent budget deficits and increased government spending coupled with tax cuts. While the White House dismisses the downgrade as political, the move could lead to higher borrowing costs for the US. The article contrasts the US debt situation with India’s, highlighting India’s lower debt-to-GDP ratio and greater reliance on domestic debt. The article also touches upon the possibility of the US defaulting on its debt if the debt ceiling isn’t raised, although this is considered unlikely. In the short term, the downgrade may have limited immediate impact on Indian investors and could even lead to a weaker dollar, potentially benefiting the Indian rupee. The article also discusses President Trump’s economic policies and their impact on the national debt.

**News Article:**

**US Credit Rating Hits Rock Bottom: Moody’s Downgrade Completes ‘AAA’ Strikeout**

**Washington D.C. –** The United States has officially lost its coveted “AAA” credit rating, after Moody’s Investor Services downgraded the nation’s creditworthiness to “AA1” on Thursday. This follows similar downgrades by S&P Global in 2011 and Fitch Ratings in 2023, marking a complete loss of the top-tier rating across all three major agencies.

Moody’s cited the country’s soaring $36 trillion debt, fueled by consistent budget deficits and unsustainable fiscal policies, as the primary reason for the downgrade. The agency projects the federal deficit, which stood at 6.4% in 2024, could surge to 9% by 2035.

“The US owes more money than it makes,” one analyst noted, pointing to consistent borrowing to offset the budget shortfall.

The White House swiftly condemned the downgrade, dismissing it as a politically motivated decision. A spokesperson for former President Trump labeled Moody’s analysis as unreliable.

The downgrade arrives as concerns grow over the nation’s debt levels, with the US now among the countries with the highest debt-to-GDP ratio. The situation is exacerbated by the need to continuously raise the debt ceiling to avoid a potential default, a scenario that could trigger a global economic crisis.

While Moody’s anticipates a potential return to “AAA” status in the future through revenue increases or spending cuts, the immediate impact could include higher borrowing costs for the US government.

The news also shines a spotlight on India’s fiscal situation, where the debt-to-GDP ratio is significantly lower.

Read More