Pakistan, May 17 -- Credit rating Moody's downgraded the United States' sovereign credit rating on Friday, citing concerns over the nation's ballooning $36 trillion debt and the inability of successive administrations and lawmakers to rein in rising deficits and interest payments.

The lowered the U.S. rating by one notch from its long-standing top-tier "Aaa" rating to "Aa1", marking the first downgrade by Moody's since it began rating U.S. debt in 1919. The decision comes after Moody's changed its outlook on the U.S. from stable to negative in 2023, flagging fiscal concerns and escalating borrowing costs.

Moody's noted that both the White House and Congress have repeatedly failed to implement policies that would reverse the growing fisc...