Agency states that decision was due to the increase in debt and interest; Despite the relegation, the future perspective has been changed from “negative” to “stable”
It relegated it on Friday (16.mai.2025) the US credit note of “Aaa” (Maximum note) for “AA1” (2nd higher). The decision, according to the risk agency, was increased debt over the years and the.
“The successive administrations and the US Congress failed to reach a deal on measures to reverse the trend of large annual tax deficits and increasing interest costs […] We foresee that US federal debt burden will increase to about 134% of GDP [Produto Interno Bruto] By 2035, compared to 98% in 2024 ″he said. Read the note (PDF – 158 kb).
Moody’s was the last of the major risk agencies that still attributed maximum grade to the United States. It did the relegation in 2011, and a.
Despite the relegation, the agency changed the future perspective of the country of “negative” to “stable”.
Credit notes
Credit notes (or ratings) These are evaluations made by agencies such as Moody’s on the ability of a country, company or institution to honor their debts.
The most respected companies in the market are Fitch, Moody’s and S&P (Standard & Poor’s), which periodically send technicians to the countries evaluated to analyze the conditions of the economy.
In 2024, Moody’s and kept the perspective in “Positive”.
The risk classification by foreign agencies represents a confidence measure of international investors in the economy of a particular country. The notes serve as a reference for interest on government bonds, which represent the cost for the government to borrow money from investors.
In practice, they function as a risk classification: the higher the grade, the lower the risk of default (default); The lower, the higher the risk. Range from AAA to C and are divided into 3 large risk bands: investment degree, speculative degree and high risk.
A positive assessment makes a country and its companies raise funds in the international market with lower costs and better payment terms.
Similarly, a good classification attracts foreign investments to the country. Foreign pension funds invest only in countries with investment grade granted by at least two risk classification agencies. Otherwise, the country is considered speculative degree.
In the investment degree is divided as follows:
- AAA – Maximum investment quality, practically null risk;
- AA1 – Very high quality, very low risk;
- AA2 – Very high quality, very low risk;
- AA3 – Very high quality, very low risk;
- A1 – high quality, low risk;
- A2 – high quality, but with some risk;
- A3 – good quality, moderate risk;
- BAA1 – Average quality, it is still a degree of investment;
- BAA2 – Average quality, increasing risk;
- BAA3 – Last level before turning speculative degree.
