September 25, 2023

Moody’s: Government shutdown can negatively impact U.S. credit rating

Kevin McCarthy speaks to members of the press at the U.S. Capitol.

Another bond rating agency is responding to congressional dysfunction and a rapidly approaching government shutdown with a warning about “credit negative” implications for U.S. sovereign debt. Color us shocked.

Moody’s Investors Service, one of the world’s top credit rating agencies, wrote today that a government shutdown “would underscore the weakness of US institutional and governance strength relative to other AAA-rated sovereigns that we have highlighted in recent years.”