After the closing bell on Friday, Moody’s became the last major credit-rating firm to downgrade U.S. sovereign debt from its perfect AAA status to Aa1. The firm argues that the U.S. is on a trajectory to increase entitlement spending—without the necessary government revenues to keep interest payment ratios at levels similar to other sovereign nations.

The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.