Hey there! 👋 Did you know that countries, just like people, can borrow money? When they do, they get a credit rating, which is like a report card showing how good they are at paying it back.
Moody’s Ratings, a big company that gives these report cards, just lowered the United States’ score from Aaa to Aa1. 📉 This happened because the U.S. government has been borrowing a lot of money, and now it owes more than ever before! 💰💸
Why does this matter? Well, a lower credit rating means it’s harder and more expensive for the U.S. to borrow money in the future. It’s like if your friend started to doubt if you’d pay back the money you borrowed—they might charge you extra next time! 😯
But don’t worry too much! Moody’s also changed the outlook (which is like a prediction) from negative to stable. That means they think things might not get worse, at least for now. 😊
This is a good reminder about the importance of handling money wisely, whether you’re saving your allowance or running a country! 💡
Reference(s):
Moody's Ratings cuts U.S. credit rating citing budgetary burden
cgtn.com
