Scope warns US debt could hit 160% of GDP within 10 years

InfoQuest··US·Read original
3▲0 ▼0Impact / 5
Summary · why it matters

Scope Ratings has warned that US government debt could rise to around 160% of gross domestic product, or GDP, within the next 10 years, while net interest costs could climb to exceptionally high levels by 2032. It said large budget deficits and continuously rising borrowing could make the United States more vulnerable to shifts in investor confidence, and that the current US fiscal trajectory is not sustainable over the medium term without stronger economic growth or significant increases in government revenue and cuts in spending. Scope also warned of risks from an upcoming conflict in Congress over the US debt ceiling. Despite fiscal concerns, Scope kept its US credit rating at AA- with a stable outlook, three notches below Scope's highest rating, and currently rates the US two notches below Moody's Ratings, Fitch Ratings and S&P Global Ratings after its latest downgrade during the 2025 debt-ceiling standoff. No major credit rating agency now gives the US a top rating, after Moody's downgraded the US last year. Scope is a European credit rating agency and one of five firms used by the European Central Bank, or ECB, to assess collateral, and the only one of that group based in Europe.

Impact on assets 2

Cloud & Digital Infrastructure▲ · 2 stocks
Moodys Corporation
MCO
± MixedCapitalrelevance

Mentioned only as a comparison: Scope rates the US two notches below Moody's, Fitch and S&P after Moody's downgraded the US last year.

S&P Global Inc
SPGI
± MixedCapitalrelevance

Named only for context as one of the agencies whose US rating is above Scope's, with no company-specific development.

Off-coverage companies 2

Scope RatingsPrivate▲ Positive
Capitalrelevance

Scope Ratings is the subject, warning on US debt trajectory while affirming its AA- US rating with a stable outlook.

Fitch RatingsPrivate± Mixed
Capitalrelevance

Referenced only as a peer rating agency ranked above Scope on the US; no Fitch-specific news.