Government Shutdown May Harm U.S. Credit Quality, Moody’s Says

A U.S. government shutdown or failure to raise the debt limit may slow economic activity, which would damage the nation’s credit quality, according to Moody’s Investors Service.

While the ratings company expects the nation’s leaders will avoid a shutdown and increase the debt limit, if it fails to do so “the consequences for the economy and government revenues would be negative,” it said in a report today.