Scope downgrades US credit rating to AA-

On October 25th, local time on October 24th, European rating agency Scope Ratings downgraded the United States' credit rating by one notch to AA-, three notches below the company's top rating. The statement said that < b > the main driver of the downgrade is the continued deterioration of public finances and the weakening of governance standards . Scope expects the US government debt-to-GDP ratio to reach 140% by 2030, much higher than most of its sovereign counterparts. This is mainly due to the persistently high federal deficit and the increasing burden of net interest payments. The agency also said that Trump's second term shows a clear consolidation of executive power, weakening the traditional system of checks and balances that have long underpinned effective governance. This is reflected in the increasing concentration of executive branch power and the diminished effectiveness of Congress due to continued political polarization and legislative gridlock. This weakening of governance has reduced the predictability and stability of US policymaking, increased the risk of policy mistakes, and weakened Congress' ability to address structural fiscal challenges.