US Risks Its Top Credit Rating With Shutdown, Moody's Warns
- Moody’s says shutdown would reflect governance weakness
- Rating firm keeps US credit grade, outlook unchanged
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Moody’s Investors Service, the only remaining major credit grader to assign the US a top rating, has signaled that its confidence is wavering ahead of a potential government shutdown.
While “debt service payments would not be impacted and a short-lived shutdown would be unlikely to disrupt the economy, it would underscore the weakness of US institutional and governance strength relative to other Aaa-rated sovereigns,” analysts led by William Foster wrote in a report Monday.