Why is the US’ credit rating so exceptional despite the amount of debt it takes on?

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I’m a United States citizen. Moody gives the US a AA+ credit rating (it was downgraded from AAA in 2011).

How can this be, despite the substantial amount of debt the US holds that only continues to grow?

Is it GDP, defense capabilities, the dollar being the de facto currency almost worldwide? A combination of these? Or is there another huge factor(s) I am missing?

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87 Answers

Anonymous 0 Comments

1) Whole world trades in dollars. As long as dollar is reserve currency, US will never default, b/c dollars will always be in demand.

2) Backed by largest economy & military & world, hence stability.

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