The 2 US Companies With a Better Credit Rating Than Uncle Sam Belong in Every Retirement Portfolio

"S&P Global rates only two U.S. public companies AAA, one notch above the federal government itself. S&P downgraded the United States to AA+ in 2011, and Fitch followed in 2023, leaving Uncle Sam a step below the small club still graded at the top of the scale. That club has two members: Johnson & Johnson (NYSE: JNJ | JNJ Price Prediction) and Microsoft (NASDAQ: MSFT)."

"A AAA rating is the highest possible signal of debt-repayment confidence from a major agency. It reflects fortress balance sheets, durable free cash flow, and disciplined capital allocation across full credit cycles, signaling survivability through rate shocks and recessions. For retirement-focused investors who want holdings that can continue paying dividends through recessions and rate shocks, this rating is both rare and meaningful."

"Microsoft carries a market capitalization of roughly $3.0 trillion and the kind of recurring software and cloud economics that bond analysts dream about. In Q3 FY2026, reported April 29, 2026, the company posted revenue of $82.89 billion, up 18.3% year over year, with EPS of $4.27 beating the $4.07 consensus estimate. Operating cash flow reached $46.68 billion in the quarter, and commercial remaining performance obligations stood at $627 billion, a multi-year contracted backlog few peers can match."

"The AAA question for Microsoft is the AI capital expenditure cycle. Capex reached $30.88 billion in Q3 FY2026, up 84.4% year over year, while CEO Satya Nadella noted the AI business surpassed a $37 billion annual revenue run rate, up 123% year over year. The balance sheet still absorbs it: shareholders' equity grew to $414.37 billion, debt-to-equity is 0.33, and int"

S&P Global rates only two U.S. public companies at AAA, placing them one notch above the federal government, which was downgraded to AA+ by S&P in 2011 and by Fitch in 2023. A AAA rating signals very high confidence in debt repayment, supported by fortress balance sheets, durable free cash flow, and disciplined capital allocation across credit cycles. The rating is presented as rare and meaningful for retirement-focused investors seeking holdings that can keep paying dividends through recessions and rate shocks. Microsoft is identified as the only U.S. technology firm in the AAA group, with large scale, recurring software and cloud economics, strong quarterly results, and substantial contracted backlog. The main AAA risk is the AI-driven capital expenditure cycle, with capex rising sharply alongside rapid AI revenue growth.

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