Why❓ Essentially because this and many previous administrations and Congresses have failed to address our growing debt, our annual deficits and the interest payments on our debt.
In the last year alone we have cut taxes irresponsibly and made multiple promises of dividend payments to Americans- also irresponsible…and yet nobody seems to ask how we can afford any of it.
Continuing the pattern, denying the situation we face, lying about it and worse, actually contributing to making our debt situation worse is inexcusable and puts Americans at risk.
No, “we are not the best credit in the world,”not by the standard measure of sovereign credit ratings. Trump’s claim doesn’t match how the major agencies actually rate the US right now.
Where the US stands: The United States has lost its top credit rating from all three major agencies: S&P cut it to AA+ in 2011, Fitch followed in 2023, and Moody’s downgraded it to Aa1 in May 2025. As of 2026, no major agency rates US sovereign debt at the top AAA/Aaa tier for the first time in over a century. The Global StatisticsThe Global Statistics
Who actually has the best ratings: Germany, Canada, Australia, and Switzerland all continue to hold the top AAA/Aaa rating from both major agencies. More broadly, Australia, Canada, Denmark, Germany, Liechtenstein, Luxembourg, Netherlands, Norway, Singapore, Sweden, and Switzerland currently hold the top AAA grade. The Global StatisticsWorld Population Review
Why the US was downgraded:
- S&P cited weakening effectiveness, stability, and predictability of American policymaking and political institutions following a prolonged debt ceiling standoff, along with an insufficient plan to stabilize the government’s debt trajectory. The Global Statistics
- Fitch pointed to the nation’s high and rising debt burden, repeated last-minute debt ceiling brinkmanship, and the absence of a credible medium-term plan to reverse the fiscal deterioration. The Global Statistics
- Moody’s downgraded the US because successive administrations and Congresses failed to agree on measures to reverse large annual fiscal deficits and growing interest costs.
The real threat is the debt spiral. If interest begets debt, and debt begets interest, eventually debt will spin out of control. A fiscal crisis, once unthinkable, is now a distinct possibility.
It’s long past time for policymakers to wake up to the growing warning signs and pivot toward meaningful deficit reduction. Putting deficits on a path toward 3% of GDP would put our debt on a more sustainable course and likely reassure financial markets that we’re serious about bringing our fiscal house in order. The Committee for a Responsible Federal Budget
The United States borrowed $1.8 trillion in the first ten months of Fiscal Year (FY) 2026, including $432 billion in July, according to the latest Monthly Treasury Statement from the Treasury Department.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
The United States has borrowed more in the first 10 months of fiscal year 2026 than it did in all of fiscal year 2025. Today’s Treasury figures show we’re already $1.8 trillion in the red, suggesting we’re on track to borrow over $2 trillion this fiscal year.
