By Admin 
Us credit rating downgrade: The world’s largest economy has been seen for the first time in the history of America when its rating was cut by three major rating agencies, ie it was not given the top tier credit rating. Moody has reduced the American sovereign credit rating from triple one to ‘AA1’. The most interesting thing is that since the year 1919, Moody was being given the top rating to America. However, in 2023, he gave a negative outlook to America.
Similarly, S.EdP Global Rating removed the rating of triple ‘A’ from the US in 2011. Whereas Fitch rating also reduced America’s rating from August 2023 to ‘AA+’ from Triple ‘A’.
Rating due to increasing debt
Actually, the biggest reason for reducing the US rating from the credit rating agency is the increasing debt. Moody says that America’s debt has increased rapidly in the last decade. In the year 2024, America’s loan was more than about 35 trillion dollars, while its GDP is about 29 trillion dollars.
Moody estimates that the US government deficit i.e. Federal Deficit can come up to 9 percent of GDP by 2035. Last year it was 6.4 percent. In such a situation, the question is arising that after all, what can have some effect on India and other countries of the world to reduce America’s ratings from the rating agencies?
What effect?
Due to ratings by rating agency, the US government may have to pay more interest than before. Seeing the rating of a country or company, investors decide how much loan will be safe. Apart from this, foreign investors remain confident in the Indian market at this time. But if the trend of global investors changes, then there can be loss in its Indian market too. Overall, now America will have to reduce its debt and deficit to fix its rating.
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