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

We are a stable, advanced economy. We pay our debt, 100% of the time. Nobody is afraid that buying U.S. debt is too risky.

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