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Moody's Ratings cuts U.S. credit rating citing budgetary burden

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Moody's Ratings cuts U.S. credit rating citing budgetary burden

2025-05-17 15:39 Last Updated At:23:47

Moody's Ratings on Friday slashed U.S. long-term issuer and senior unsecured ratings to Aa1, down from the highest rating of Aaa, citing rising government debt and interest payment ratios.

The rating firm also changed its outlook for U.S. ratings from negative to stable.

"This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns," said a release by Moody's Ratings.

Moody's Ratings changed the outlook of U.S. sovereign rating from stable to negative in November 2023.

According to the Moody's release, "Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs."

"We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration. Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat," the release read.

In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher, said Moody's Ratings.

U.S. fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns, according to the credit rating agency.

The downgrade on Friday means the United States has lost its last triple-A credit rating from a major rating firm, following cuts by Fitch Ratings in 2023 and Standard and Poor's Global Ratings in 2011.

Moody's Ratings also forecasted a bleak outlook for the outlook of U.S. debt burden and fiscal conditions in the coming decade.

Without adjustments to taxation and spending, the United States is expected to continue to have limited budget flexibility, with mandatory spending, including interest expense, to rise to around 78 percent of total spending by 2035 from about 73 percent in 2024.

If the 2017 Tax Cuts and Jobs Act is extended, it will add around 4 trillion U.S. dollars to the federal fiscal primary (excluding interest payments) deficit over the next decade, according to Moody's Ratings.

Moody's Ratings anticipated that U.S. federal debt burden would rise to about 134 percent of GDP by 2035, compared to 98 percent in 2024.

Despite high demand for U.S. Treasury assets, higher Treasury yields since 2021 have contributed to a decline in debt affordability, warned Moody's Ratings.

Federal interest payments are likely to absorb around 30 percent of revenue by 2035, up from about 18 percent in 2024 and 9 percent in 2021, said Moody's Ratings.

"Moody's downgrade of the United States' credit rating should be a wake-up call to Trump and Congressional Republicans to end their reckless pursuit of their deficit-busting tax giveaway," U.S. Senate Democratic Leader Chuck Schumer said in a statement on Friday.

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

Moody's Ratings cuts U.S. credit rating citing budgetary burden

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China's Xixia Imperial Tombs officially included on UNESCO World Heritage List

2025-07-11 22:30 Last Updated At:07-12 00:17

The United Nations Educational, Scientific and Cultural Organization (UNESCO) on Friday announced the inclusion of the Xixia Imperial Tombs, which are located in northwest China's Ningxia Hui Autonomous Region, into its World Heritage List.

The Xixia Imperial Tombs, royal mausoleums complex of the emperors in ancient China's Xixia Dynasty (1038-1227), were officially added to the UNESCO World Heritage List on Friday during the 47th session of the World Heritage Committee held in Paris, France.

The inscription brings the total number of World Heritage sites in China to 60.

The Xixia Imperial Tombs are located at the foot of the Helan Mountain, 30 km west of the city of Yinchuan, the capital of northwest China's Ningxia Hui Autonomous Region.

They were built by the Tangut (Dangxiang) people, an ethnic minority that prospered in agricultural-husbandry areas of northwest China between the 11th and 13th centuries.

To date, nine imperial tombs, 271 subordinate tombs, a 5-hectare complex of architectural ruins and 32 flood control sites, in addition to over 7,100 architectural components and finely crafted artifacts, have been uncovered at this site.

The findings have offered valuable insights into the sophisticated engineering, artistry and cultural achievements of the Xixia Dynasty.

The 47th session of the World Heritage Committee convened Monday at UNESCO headquarters in Paris, France, to evaluate 30 applications for World Heritage status.

The World Heritage Committee is responsible for reviewing new applications for inclusion in the World Heritage List, as well as overseeing and guiding the protection of sites already listed. Currently, there are 1,223 World Heritage sites worldwide, comprising 952 cultural heritage sites, 231 natural heritage sites, and 40 mixed sites.

China's Xixia Imperial Tombs officially included on UNESCO World Heritage List

China's Xixia Imperial Tombs officially included on UNESCO World Heritage List

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