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flag Scope Ratings downgrades U.S. credit to AA- due to high deficits, rising debt, and weakened governance.

flag German credit rating agency Scope Ratings downgraded the U.S. credit rating to AA- from AA, citing persistently high federal deficits, rising debt costs, and weakened governance. flag The deficit hit 8.0% of GDP in 2024, well above the pre-pandemic average of 4.8%, and is projected to remain high, averaging 7.8% through 2030. flag Without fiscal reforms, the debt-to-GDP ratio could reach 140% by 2030. flag The agency blames the One Big Beautiful Bill Act for limiting budget flexibility and reducing Congress’s ability to address long-term fiscal challenges.

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