The financial ratings firm lowered the U.S. credit rating from the gold-standard Aaa to Aa1. It said it expected federal deficits to widen, mostly due to increased interest payments on debt, rising entitlement spending and relatively low revenue generation.

Moody's lowered its rating on U.S. debt from Aaa to Aa1, pointing to sustained increase in federal debt and interest payments.

Financial ratings firm Moody’s Ratings downgraded the U.S. government’s credit ratings Friday, citing its rising debt and interest in a move that underscores a ballooning federal budget deficit, making it the last of the big three firms to downgrade the government’s credit.