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Moody's Downgrades US Creditworthiness: What Threats Loom in the Markets Now?
The United States loses its last top credit rating in the credit market. In the past, such decisions have caused violent price swings in the financial market.
2025-05-18 16:55:09
Finance
US Credit Downgrade: A Wake-Up Call for Financial Stability
The recent downgrade of the United States' credit rating from AAA to Aa1 by Moody's marks a significant shift in financial perception. This decision stems from the alarming rise in national debt, currently at $36 trillion, and the absence of substantial fiscal reforms.
While previous downgrades have led to tumultuous market reactions, experts suggest that the immediate impact on financial markets may be limited. Analysts predict only a slight rise in Treasury yields, as the market adjusts to new realities.
However, the downgrade serves as a stark reminder of the growing challenges posed by rising deficits and government spending. With Congress poised to debate a major tax and spending bill, concerns about long-term financial health remain prevalent.
This development highlights the urgent need for effective fiscal strategies to ensure economic stability and restore confidence among investors, particularly as the U.S. navigates a complex global financial landscape.
The press radar on this topic:
zeit
The creditworthiness of the USA: Is the next stock market crash coming?
The USA is now officially considered less creditworthy after the rating agency Moody's downgraded its creditworthiness from AAA to AA1. The reason for this is rising debt and a deteriorating financial situation. The USA already has 37 trillion euros in debt and has to pay 85 billion US dollars in interest every month. This rating step could lead to a stock market crash, as financial experts fear.
The Street
Markets reel after Moody’s strips US of perfect credit score again
Moody's Investors Service has downgraded the United States' sovereign credit rating from 'Aaa' to 'Aa1', citing the country's rising $36 trillion debt and lack of meaningful fiscal reform. This marks the first time since 1919 that Moody's has downgraded the U.S. credit rating, following similar moves by S&P in 2011 and Fitch in 2023. The downgrade has spooked investors, pushing bond yields higher and pressuring risk assets like cryptocurrency, which often react to macroeconomic signals. The cr..
Yahoo Finance
Investors Await Another Monday Jolt After Moody’s Downgrades US
The Moody's Ratings downgrade of US debt from Aaa to Aa1 is expected to have limited impact on financial markets, according to analysts at Barclays Plc and Wells Fargo & Co. Strategists predict 10-year and 30-year Treasury yields will rise another 5-10 basis points in response to the downgrade, but this may not trigger forced selling of Treasuries or affect money markets significantly. US Congress is set to work on a massive tax-and-spending bill that could add trillions to the federal debt over..
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