Moody’s has downgraded the nation’s credit rating one notch to Aa1, leaving the U.S. without a top grade among any of the major rating agencies.

Ray Dalio warns that Moody's credit downgrade doesn't reflect the risks of money printing by the federal government in order to pay off debt.

Moody’s downgrade from AAA to Aa1 reflects concern about government debt and ends a 108-year perfect rating from the firm, despite previous warnings and previous downgrades from Fitch and S&P Global. Treasury Secretary Scott Bessent dismissed the downgrade as a lagging indicator that reflects rising debt under the Biden administration.

Moody’s has downgraded the US credit rating for the first time, citing rising debt and political dysfunction. Here’s what the move means for your wallet, interest rates, and the broader economy.

Moody’s Ratings downgraded the United States’ long-term issuer and senior unsecured ratings from Aaa to Aa1 on Friday

The decision could impact financial markets, raise interest rates, and highlight fiscal challenges for the U.S. government.

While technology stocks had a volatile reaction to two other major U.S. credit downgrades in recent years, Friday’s latest rating cut from Moody’s isn’t expected to punch a dent in tech stocks this year.