The United States has been stripped of a prized top credit rating for the first time, as fears rise that the Trump administration will not tackle its soaring debts, The Telegraph reported.

Moody’s has downgraded America’s credit rating to Aa1, down one notch from Aaa, amid warnings over soaring deficit and debt interest costs.

The U.S. has now lost its triple-A rating from all three major credit rating agencies, after Fitch made a similar downgrade in 2023. S&P Global downgraded the U.S. in 2011.

It means the U.S. can no longer claim to hold the esteemed rating, which allows countries to borrow at the lowest possible rates.

Moody’s said its action “reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns”.