India, May 17 -- Moody's Investors Service cut the United States' credit rating on Friday, citing concerns over rising debt and political deadlock, dealing a blow to Donald Trump's narrative of prosperity and economic strength.

The downgrade marks a significant step, as Moody's was the last of the three major credit agencies to maintain a top-tier rating for the US.

The agency lowered the US sovereign credit rating by one notch from "Aaa" to "Aa1," pointing to the government's failure to manage its ballooning $36 trillion debt and rising interest costs. The move lowers America by one level on Moody's 21-point rating scale.

Moody's had held the US at its highest rating since 1919. But it had first raised alarms about US fiscal risks bac...