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

2.07K views

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

87 Answers

Anonymous 0 Comments

National debt is, almost, like personal debt in the sense that if you pay your debt on time every time, you will be deemed worthy of more credit in the future. Hence your credit will rating will go up.

This is extremely simplified but is in essence a major factor.

You are viewing 1 out of 87 answers, click here to view all answers.