U.S. Debt could Reach 160% of GDP Within a Decade, Scope Warns

"The U.S. faces increasing exposure to shifts in investor sentiment as large budget deficits push government debt higher, Scope Ratings warned Friday, as it maintained the country’s AA- credit rating with a stable outlook.

"The ratings firm expects U.S. government debt to climb to about 160% of gross domestic product within the next decade. It also expects net interest costs to reach what it described as an 'exceptionally high' level by 2031.

"'Absent materially stronger economic growth or substantial fiscal adjustment through either higher revenues or spending reductions, Scope expects debt dynamics to remain unfavorable,' the firm said.

"Scope also flagged risks surrounding the approaching congressional standoff over the U.S. debt ceiling.

"The firm’s AA- rating places the U.S. three levels below its highest possible credit grade. Scope last downgraded the country during the 2025 debt-ceiling impasse and currently rates the U.S. two levels below Moody’s Ratings, Fitch Ratings and S&P Global Ratings.

"Scope said continued increases in borrowing could leave the U.S. more sensitive to changes in market sentiment, particularly as rising interest expenses add to fiscal pressures."

- from investing.com

(emphases mine)

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