Moody’s is warning that a federal government shutdown on Oct. 1 would likely result in a downgrade of its credit rating on the U.S. economy. This warning comes as the leading credit rating agency emphasizes the importance of Congress continuing to fund the federal government past the end of the current fiscal year on Sept. 30.
Failure to continue funding the government could have dire consequences for the economy and stock markets. According to the rating agency, that would result in a damaging downgrade from the current top “AAA” credit rating enjoyed by the United States.
“For the LORD your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.” Deut. 15:6
A Warning From the Credit Rating Agencies
Moody’s currently assigns the U.S. government its highest credit rating and gives the country a “stable outlook.” However, Moody’s is the last major credit rating agency to maintain the highest rating on the United States. Earlier this year, Fitch Ratings downgraded the U.S. government one notch to “AA+.” That’s the same rating that S&P Global assigned the U.S. back in 2011 following a “similar debt ceiling fight.”
Both Fitch and S&P Global cited political dysfunction in Washington, D.C. and growing debt concerns as the main reasons for their lowered U.S. credit ratings.
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