Scope warns of possible US credit rating downgrade

European rating agency Scope warned of a possible US credit rating downgrade, pointing to risks that could undermine confidence in the dollar. These risks stem from the protracted trade conflict and concerns about US measures, such as capital controls, getting even more extreme under President Trump. As evidence, the agency cited a recent sharp decline in the American dollar and market expectations of a downgrade in the country's credit rating.

The agency emphasized America's current creditworthiness vulnerability to its own trade policies. According to Scope experts, it could be negatively impacted if further government measures continue to strengthen currencies alternative to the dollar.

Scope's current rating for the US is “AA,” below other major agencies' assessments. Factors such as stronger trade tensions between the EU and China and increased investment in the eurozone could further undermine the dollar's position. While these changes are gradual, Scope also warns that countries with financial ties to the States could face a potential impact on their own credit ratings.