Persistent fiscal deficits and debt exceeding $36 trillion continue to weigh on U.S. sovereign credit metrics, yet major agencies maintain stable outlooks following Moody’s May 2025 downgrade to Aa1. The U.S. economy’s scale, labor market resilience, and the dollar’s entrenched reserve-currency status underpin this assessment, limiting near-term downgrade pressure despite elevated debt-to-GDP ratios above 120 percent. With no major rating actions or acute fiscal shocks since mid-2025 and policymakers showing limited appetite for immediate consolidation, traders assign roughly 25 percent implied probability to a further notch lower before 2027. Key watchpoints include upcoming fiscal year budget negotiations and any renewed debt-ceiling tensions that could test governance perceptions.