The downgrade, from the highest rating to one notch below, comes as the president’s budget bill suffered a blow in Congress. Republican budget hawks joined Democrats earlier Friday to block the package — known as the One Big Beautiful Bill Act.

Moody’s Ratings slashed the United States’ credit rating down a notch to Aa1 from the highest triple A on Friday, citing the budgetary burden the government faces amid high interest rates.

The US lost its triple-A credit score with Moody's on Friday, with the credit ratings firm citing rising federal debt and interest costs. The US was downgraded from Aaa, the highest rating, to Aa1. Some sovereigns with an Aaa ratings from Moody's include the European Union,