The downgrade to AA1 from AAA adds to the bad news for the US president, coming on the same day his flagship spending bill, touted as the "big, beautiful bill" failed to pass a key vote in Congress. Five Republican fiscal hawks had joined all Democrats in delivering a stunning setback to Trump's domestic agenda, demanding deeper budget cuts.
Explaining their decision, the ratings agency noted “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns”.
Moody’s decision to downgrade the US from its top credit rating mirrors similar decisions from the two other major US ratings agencies, S&P and Fitch. S&P were the first to cut their rating for the US back in 2011, during Barack Obama’s first term in office, citing their concerns that a debt management plan “would be necessary to stabilise the government’s medium-term debt dynamics”. Fitch followed suit 12 years later, warning of “a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters”.
Moody’s echoed their peers in their decision on Friday, noting in a statement that “successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs”.
As for the budget bill, its chances of success are not hopeless, but its failure gives the Trump administration their first legislative bruise of the year.
Ninety-two points and 112 goals define Celtic's season. That there were still jeering and jibing from the home fans on trophy day when their heroes huffed and puffed but failed to blow the St Mirren house down speaks volumes of the standards expected at Parkhead these days. And that's because yesterday, the champions played a lacklustre game and managed a 1-1 draw against the team from Paisley.
Brendan Rodgers' side dominated from kick-off but the Buddies' defence stood firm. And then, the latter scored in the fifty-first minute after Celtic erred in dealing with a set piece into the box.
Thankfully, Celtic netted a last-gasp equalizer in the fourth minute of added on time. St Mirren failed to clear their lines and that allowed Alastair Johnston to slide the ball through to the unmarked James Forrest who fired low past the goalkeeper to secure a share of the spoils for Celtic on the day they lifted the Scottish Premiership title.
Still, I am putting my faith in Celtic that they will go into next week's Scottish Cup final, with a treble on the line, fully aware that they cannot let their levels drop again if they want to complete the domestic clean sweep.
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