Major US ratings agency Moody's has downgraded the credit rating of the United States, citing rising fiscal deficits.



Moody's Ratings announced on Friday that it had lowered the US by one notch from the top Aaa to Aa1. That effectively means a downgrade of US government bonds.



Moody's said, "Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs."



The firm also said it expects larger deficits over the next decade as entitlement spending rises.



It added, "While we recognize the US' significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics."



In November 2023, Moody's changed its outlook on the US from stable to negative.



In August 2011, Standard & Poor's -- now S&P Global Ratings -- downgraded the US from the highest grade by one notch.



Fitch Ratings also lowered it from the top grade in August 2023.



The Wall Street Journal says the move by Moody's strips the US of its last remaining triple-A credit rating from a major ratings firm.