Quite a baffling and concerning oversight from the FAA.
This and the MAX saga doesn't paint a glowing picture of a functional authority.
Could you imagine the FAA auditing the FAA ?
The FAA said the rating means that FAA is deficient in one or more areas, "such as technical expertise, trained personnel, record-keeping, and/or inspection procedures."
FAA said "in carrying out its duties as an aviation regulator, some shortcomings exist. We wish to emphasize that the assessment only covered FAA’s role as an aviation regulator."
FAA said "plans are already well underway to address the findings of the audit" with the goal of getting its Category One rating restored.
Modified from Reuters article “ U.S. FAA downgrades Malaysia's air safety rating”
“Don't be a show-off. Never be too proud to turn back. There are old pilots and bold pilots, but no old, bold pilots.” E. Hamilton Lee, 1949