U.S. Debt Projected to Reach 160% of GDP Within a Decade, Scope Ratings Warns
Scope Ratings has issued a warning that the U.S. government debt is projected to climb to approximately 160% of its Gross Domestic Product (GDP) within the next decade. The ratings firm maintained its AA- credit rating for the U.S. with a stable outlook but highlighted the unsustainable fiscal trajectory without stronger economic growth or substantial adjustments to government revenue or spending. Scope also anticipates that net interest costs will reach an exceptionally high level by 2031. The firm flagged risks associated with the approaching congressional standoff over the U.S. debt ceiling. Scope's AA- rating places the U.S. three levels below its highest possible credit grade and is two levels below the ratings from Moody’s, Fitch, and S&P Global Ratings. This assessment follows Moody's downgrade of the U.S. last year, meaning the U.S. no longer holds the highest credit rating from any major agency.
