New York, USA Moody’s Investors Service has downgraded the United States’ credit rating from AAA, citing growing concerns over the country’s fiscal stability and rising debt levels. This marks the first downgrade of the U.S. at this top-tier rating in over a decade.
The move has sparked volatility in global markets, with analysts warning of potential ripple effects across major exchanges. The Australian Securities Exchange (ASX) is expected to face downward pressure as investors reassess risk exposure linked to the U.S. economy.
Moody’s highlighted political gridlock over debt management and long-term budget challenges as key factors influencing their decision.
U.S. Treasury officials responded by reaffirming their commitment to responsible fiscal policies and expressed confidence in maintaining economic stability.
