After the closing bell on Friday, Moody’s became the last major credit-rating firm to downgrade U.S. sovereign debt from its perfect AAA status to Aa1. The firm argues that the U.S. is on a trajectory to increase entitlement spending—without the necessary government revenues to keep interest payment ratios at levels similar to other sovereign nations.

Moody's has downgraded the US credit rating to AA1 due to rising debt and interest payments, aligning with earlier moves by Fitch and S&P over fiscal and political concerns