Rising debt and repeated political standoffs have ended the United States’ long-standing run at a perfect triple-A credit rating, according to DataPro in its Monthly Rating Brief for May.
The Nigerian technology-driven Credit Rating Agency noted that for years, the US was widely seen as the safest borrower in the world, with its ability to repay debt rarely questioned.
While it still retains a triple-A (AAA) rating from at least one major global credit assessor, it is now generally placed just below the highest possible credit category by other rating institutions.
DataPro clarified that this change should not be misunderstood as a sign of economic weakness or an increased risk of default. Instead, it reflects growing concerns about how US public finances are being managed over time.
“The adjustment does not signal economic weakness or repayment risk,” DataPro stated. Rather, it points to “fiscal discipline, rising debt levels and governance dynamics.”
At the centre of the concerns is the steady rise in US government debt relative to the size of its economy, noting that over the years, government spending has consistently outpaced revenue, resulting in persistent fiscal deficits.
DataPro attributed this to several long-running factors, including large emergency stimulus packages during periods of economic crisis, the rising cost of entitlement programmes such as healthcare and pensions, and increasing interest payments as global borrowing costs have gone up.
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Although the US economy remains strong and highly resilient, the rating agency warned that its debt trajectory raises questions about long-term sustainability.
It stressed that political disagreements over government spending and borrowing limits have also played a role in shaping credit perceptions.
According to DataPro, repeated standoffs over the debt ceiling have, at times, pushed the government close to funding disruptions, even though the country has always met its obligations.
It noted that “even the repeated brinkmanship over borrowing limits affects confidence,” adding that the mere risk of delay is enough to influence credit assessments.
Another concern the rating agency cited is the reduced flexibility in government finances, stating that a growing share of public spending is now tied to mandatory obligations and debt servicing, leaving less room for discretionary policy decisions.
This shift, according to DataPro, has created three long-term pressures: limited ability to respond to future economic shocks, rising debt servicing costs, and difficulty achieving meaningful deficit reduction without broad political agreement.
Governance and policy predictability have also come under scrutiny, maintaining that while US institutions remain strong and globally respected, credit assessors are increasingly focused on the stability of fiscal decision-making.
DataPro highlighted recurring last-minute budget negotiations, rising political polarisation, and uncertainty around long-term fiscal reforms as key concerns.
However, it stressed that this is not about institutional failure, but about “reduced policy stability compared to historical norms.”
Despite these challenges, the US remains one of the strongest sovereign borrowers in the world, it said.
Its position is supported by the scale and diversity of its economy, the dominant global role of the US dollar, deep and liquid capital markets, and strong monetary policy credibility anchored by an independent central bank.
DataPro maintained that the loss of a unanimous AAA standing is not driven by fears of default or economic fragility. Instead, it reflects a reassessment of fiscal discipline and political predictability in managing public debt.
It added that the shift represents concerns about long-term fiscal sustainability rather than any decline in America’s economic dominance.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X