Sovereign Rating Downgraded: US to AA- – Analysis
News Context
At a glance
| Fact | Details |
|---|---|
| Agency Downgrade | Scope Ratings lowered the US sovereign rating from AA to AA-. |
| Outlook Change | scope Ratings raised the outlook from “negative” to “stable”. |
| Debt Projection (2030) | US public debt is estimated to reach 140% of GDP. |
| Debt Level (2024) | US public debt was at 122% of GDP in 2024. |
| Budget Deficit (2025-2030) | The budget deficit is expected to remain around 7.5% of GDP. |
| Key Drivers of Deficit | Increase in interest payments and extension of tax cuts. |
| Governance Concerns | The downgrade reflects “the weakening of governance standards” in the US. |
| Unfunded Liabilities | Large unfunded contingent liabilities exist, particularly related to Medicare and Medicaid. |