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

Question

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?

In: 54

Answer 1

Someone who has a small credit card and makes payments every month has better credit on paper than someone who pays cash for everything. But if you can afford to pay cash for everything you don’t need credit.