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Scope warns US debt could hit 160% of GDP within decade
The United States is rapidly losing its financial insulation. European ratings agency Scope Ratings has warned that US government debt could climb to 160% of GDP within the next decade. The agency affirmed the United States’ credit rating at AA‑ with a stable outlook but concluded that current US fiscal policy is entirely unsustainable over the medium term.
To avert a crisis, the US economy will need radical fiscal adjustments—either a sharp acceleration in economic growth or substantial tax increases coupled with significant spending cuts. Without that, budgetary spending on mere debt servicing could reach critical levels as early as 2031. The situation is complicated by an impending battle in Congress over another increase in the debt ceiling, which could provoke investor panic.
Scope’s assessment now sits three notches below the top credit rating. After recent downgrades, no major global agency still assigns the United States its highest grade. Scope, whose views are formally considered by the ECB when assessing collateral, takes a tougher line on US public finances than other agencies. Its rating for the United States stands two notches below those of Moody’s, Fitch, and S&P.
Published 07 October 2026
© InstaFintech Group
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© InstaFintech Group
