Moody’s Lowers US Credit Outlook Over “Dysfunction”

The Washington Post reports:

Moody’s on Friday offered a sharp rebuke of political dysfunction in the United States, with the credit-rating agency changing its outlook for U.S. sovereign debt to negative from stable and warning that “continued political polarization” in Congress threatens the country’s fiscal strength.

The agency, though, left the nation’s AAA credit score intact for now, keeping it as the last of the big three ratings firms to maintain the United States at the top mark.

Fitch downgraded the United States’ long-term credit rating in August, following Standard & Poor’s, which did so in 2011 after a debt ceiling standoff in Congress. Moody’s cited a string of recent red flags, including brinkmanship over the debt limit, the ouster of the House speaker and rising threats of another government shutdown.

Read the full article.

Moody’s changed its outlook for U.S. sovereign debt to negative from stable and warning that “continued political polarization” in Congress threatens the country’s fiscal strength. https://t.co/TxebpTB6cG

— The Washington Post (@washingtonpost) November 11, 2023