Top Cred­it Rat­ing Agency Warns Gov­ern­ment Shut­down Would Make U.S. Look Weak

Top Credit Rating Agency Warns Government Shutdown Would Make U.S. Look Weak

The only mem­ber of the “Big Three” agen­cies that has not down­grad­ed the U.S. cred­it rat­ing from “AAA” sta­tus warned that anoth­er gov­ern­ment shut­down would make the Unit­ed States look weak com­pared to oth­er top-rat­ed nations.
Moody’s Investors Ser­vice sound­ed the “cred­it neg­a­tive” alarm in a note on Mon­day as Con­gress scram­bles to reach a deal to fund var­i­ous arms of the fed­er­al gov­ern­ment with the new fis­cal year start­ing at the begin­ning of next month.
“While gov­ern­ment 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 that we have high­light­ed in recent years,” Moody’s said, accord­ing to CNN.
“In par­tic­u­lar, it would demon­strate the sig­nif­i­cant con­straints that inten­si­fy­ing polit­i­cal polar­iza­tion put on fis­cal pol­i­cy­mak­ing at a time of declin­ing fis­cal strength, dri­ven by widen­ing fis­cal deficits and dete­ri­o­rat­ing debt afford­abil­i­ty,” the note added.
The two oth­er “Big Three” cred­it a …