Moody’s Investors Service has downgraded the United States' sovereign credit rating from "AAA" to "Aa1," ending its last perfect rating.

In its latest report released on Friday, the global credit rating agency said the downgrade reflects a significant increase in the U.S. government's debt and interest payment ratios over the past decade.

Moody’s had been the only one among the three major international rating agencies to maintain a top-tier rating for the U.S. until now.

Fitch Ratings lowered the U.S. credit rating in August 2023, while S&P Global Ratings made a similar move back in 2011.

Following the downgrade, the U.S. government is expected to prioritize reducing national debt in its fiscal operations, with the move likely to have major implications for both federal spending and trade policy.