By Anita Hamilton

The U.S. lost its top credit rating from Moody's over the weekend, but 11 other countries still have it.

Those countries are Australia, Canada, Denmark, Germany, Luxembourg, Netherlands, New Zealand, Norway, Singapore, Sweden, and Switzerland.

Companies also get rated by Moody's, which provides a globally-recognized standard of creditworthiness. Among them, Apple, Johnson & Johnson, and Microsoft have a top credit rating too, along with government-sponsored enterprises Fannie Mae and Freddie Mac, which buy mortgages from lenders.

Moody's global long-term rating scale is designed to reflect the risk that an entity -- be it a company, a country, or financial vehicle such as mortgage-backed securities -- will be able to meet financial obligations a year or more in the future.

Those with the top rating, Aaa, are considered minimal risk, while the lowest, C, "are typically in default, with little prospect for recovery of principal and interest," according to Moody's.

In downgrading the U.S. to Aa1 Friday, Moody's noted the "increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns."

Markets were closed Friday night when Moody's adjusted its rating for the U.S., but on Monday stocks fell and Treasury yields spiked. While stocks had recouped some of those losses by the afternoon, the 30-year Treasury note yield was still close to topping 5% for the first time this year.

Write to Anita Hamilton at anita.hamilton@barrons.com

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May 19, 2025 14:18 ET (18:18 GMT)

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