Suddenly! Moody's announces downgrade of US credit rating, the US loses its last AAA endorsement! The global market is experiencing a strange phenomenon of 'everything falling' today. This is an indiscriminate decline, with both risky and safe haven assets experiencing sell offs - a situation often caused by sudden liquidity contraction. Main reason: Moody's downgraded the credit rating of the United States by one level, citing that its debt and interest payments have grown at a faster rate than sovereign countries with the same rating. Previously, Moody's was the last major agency to maintain the AAA rating on US sovereign debt. This measure marks the end of an era. In 2023, Moody's changed its outlook on the US sovereign rating due to the widening fiscal deficit and increased interest payments. Now, it has downgraded its rating from "Aaa" to "Aa1". Moody's stated that "successive US administrations and Congress have failed to reach consensus on measures to reverse the annual massive fiscal deficit and rising interest costs. Moody's estimates that the federal debt burden will rise to around 134% of GDP in 2035, compared to 98% in 2024. Previously, two other rating agencies also downgraded the rating of the United States. In August 2023, Fitch downgraded the US sovereign rating by one level, citing fiscal deterioration and repeated last-minute debt ceiling negotiations. These negotiations threaten the government's ability to pay. After the 2011 debt ceiling crisis, S&P stripped the United States of its highest AAA rating.