For over 100 years, Moody’s has assigned sovereign credit ratings based on rigorous research and time-tested methodologies – each one an objective, independent, and non-partisan analysis of decades of fiscal activity. We are proud to provide critical transparency to capital markets, supporting their stability and growth.
New York, May 16, 2025 -- Moody's Ratings (Moody's) has downgraded the Government of United States of America's (US) long-term issuer and senior unsecured ratings to Aa1 from Aaa and changed the outlook to stable from negative.
Please note, brief summaries for commonly asked questions can be found below. Please use the provided links to find more detailed information on the topic.
Published by Moody’s Ratings, credit ratings are forward-looking opinions of the relative credit risks of obligations, such as issued bonds, owed by companies, governments or other corporate borrowers. We define credit risk as the risk that a debt issuer (also known colloquially as a “borrower”) may not meet its contractual financial obligations as they come due. This definition also takes into consideration any estimated financial loss in the event of default. Ratings are issued for financial instruments as well as for issuers. For a complete description, please click here.
Moody’s Ratings rates various legal entities and debt obligations across industries and sectors, including publicly and privately held companies, financial institutions, securitized finance vehicles, project finance vehicles, and public sector entities including governments and supranational organizations.
Our credit ratings are determined by committees of seasoned credit analysts using methodologies that correspond generally to the sector or category of the debt issuer or “borrower” being rated. Our credit rating methodologies are publicly available and take into consideration quantitative and qualitative factors in determining the likelihood that the borrower will fulfill its debt obligations on time and in full. The rating committee assigns the credit rating based on our rating scale. Click here to view our methodologies.
Moody’s Ratings assigns credit ratings on global long-term and short-term rating scales. Long-term credit ratings are assigned to borrowers or debt with an original maturity of eleven months or more, while short-term credit ratings are assigned to debts with an original maturity of thirteen months or less.
Our global long-term credit ratings are expressed on a 21-point rating scale that ranges from Aaa (highest quality and subject to the lowest level of credit risk) to C (lowest rated and typically in default, with little prospect for recovery of principal or interest).
Short-term credit ratings include Prime-1 (P-1), Prime-2 (P-2), and Prime-3 (P-3), which reflect a superior ability, strong ability, and acceptable ability to repay short-term obligations, respectively. Borrowers that do not fall within any of the Prime rating categories are assigned Not Prime (NP). For more information, please see Moody’s rating scale for an overview or page 6 in this document for a complete explanation.
A Moody’s Ratings downgrade means that a credit rating committee has determined that a borrower’s credit profile has become relatively weaker, and that the borrower is therefore relatively less likely to meet its debt obligations on time and in full than previously expected. Following this determination, Moody’s Ratings will lower the borrower’s credit rating downward on our rating scale. The converse holds true for a credit rating upgrade.
Moody’s Ratings continuously monitors its outstanding credit ratings, and credit rating actions can be prompted by a range of factors, including, but not limited to, those related to an entity’s financial health, economic or industry conditions, or specific events. Our methodologies discuss factors that can lead to an upgrade or downgrade. Click here to view our methodologies.
In addition to credit ratings, Moody’s Ratings assigns outlooks, which serve as opinions regarding the likely direction of a credit rating over the medium term. Rating outlooks fall into four categories: Positive, Negative, Stable, and Developing. A Stable outlook indicates a low likelihood of a credit rating change over the medium term. A Negative, Positive, or Developing outlook indicates a higher likelihood that the credit rating may change in the medium term. In most cases, Moody’s Ratings follows up on an outlook change in about 12-18 months. For a complete description, please see page 35 here.
Moody’s credit ratings offer transparency for the relative creditworthiness of capital market investments, helping stakeholders make stronger, more informed decisions on borrowing or lending money, as well other approvals and assessments. These decisions help foster greater market efficiency and stability, as investors make informed decisions, and as borrowers organize themselves to attract the best loan terms.
Moody’s credit ratings, their associated disclosures, and the methodologies used to help determine those credit ratings – are made available by Moody’s Ratings free of charge to the public. You can view ratings here.
Moody's credit ratings and associated disclosures are formally published on ratings.moodys.com and disseminated over select newswires. In addition, certain credit rating information and research are also available on moodys.com. (Please note: information concerning private or unpublished ratings is not made publicly available).
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