Moody’s has downgraded the nation’s credit rating one notch to Aa1, leaving the U.S. without a top grade among any of the major rating agencies.

US stocks took a hit on Monday while Treasury yields rose as Wall Street processed Moody's downgrade of the US credit rating alongside developments in President Trump's tariff salvos. Moody’s cut the US government’s long-term credit rating from AAA to AA1 late Friday,

It also downgraded the long-term deposit ratings of BofA, JPMorgan and Wells Fargo to Aa2 from Aa1 and cut the long-term counterparty risk ratings of certain rated subsidiaries and branches of BNY and State Street to Aa2 from Aa1.

Moody’s downgrade from AAA to Aa1 reflects concern about government debt and ends a 108-year perfect rating from the firm, despite previous warnings and previous downgrades from Fitch and S&P Global. Treasury Secretary Scott Bessent dismissed the downgrade as a lagging indicator that reflects rising debt under the Biden administration.

Moody’s has downgraded the US credit rating for the first time, citing rising debt and political dysfunction. Here’s what the move means for your wallet, interest rates, and the broader economy.

Moody’s Ratings downgraded the United States’ long-term issuer and senior unsecured ratings from Aaa to Aa1 on Friday

Moody’s is the last of the three major rating agencies to lower the federal government’s credit. Standard & Poor’s downgraded federal debt in 2011 and Fitch Ratings followed in 2023

The decision could impact financial markets, raise interest rates, and highlight fiscal challenges for the U.S. government.