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Case Charges Dismissed


MOODY’S SAYS POTENTIAL GOVERNMENT SHUTDOWN WEAKENS US CREDITWORTHINESS


A SHUTDOWN UNDERSCORES 'THE WEAKNESS OF US INSTITUTIONAL AND GOVERNANCE
STRENGTH'

Published |Updated
Bruce Gil
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Credit rating firm Moody's warned Monday that a U.S. government shutdown is
increasingly likely and would negatively impact the nation's credit rating.

Although a government shutdown wouldn't affect the country's ability to pay its
debt, Moody's said the inability of Congress to get a budget deal done is a
"credit negative" and underscores the "weakness of US institutional and
governance strength" compared to other sovereign nations.

The company currently rates the U.S. as "Aaa stable," the agency's top grade for
borrowers.



U.S. lawmakers have until midnight Sunday to pass a new government funding bill
or federal agencies will have to partially shut down and thousands of
non-essential government workers could be furloughed. It's increasingly looking
like lawmakers are willing to let that clock run out without a contingency plan
in place to keep federal agencies from shutting down.

A shutdown "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," Moody's wrote.


Congress has until midnight on Sunday to pass a new government funding bill or
federal agencies will have to partially shut down.Win McNamee/Getty Images


A short-lived shutdown would likely not affect government debt service payments
or disrupt the economy, Moody's said, but the longer it lasts "the more negative
the potential impact on the broader economy." Any shutdown would highlight the
country's weakness in fiscal policymaking compared to its peers, the ratings
agency added.

Read More
 * Goldman Sachs Says Government Spending Shutdown ‘More Likely Than Not’
 * Sen. Tim Kaine Introduces ‘End Shutdowns Act’ as Government Shutdown Looms
 * ‘No Reason’ For Government Shutdown This Fall, White House Says
 * DeSantis Says He Would Impeach Biden, Answers on Government Shutdown
 * NASA Says Government Shutdown May Delay Historic Asteroid Reveal
 * Yellen: ‘No Reason Why We Should Have a Government Shutdown’

"After having negotiated a contentious bipartisan debt limit deal in June, U.S.
Congress is yet again renewing internal party disagreements that threaten a
government shutdown and clearly reflect the political hurdles to U.S. fiscal
policymaking," the report said.

The agency said the U.S. struggles to a set medium-term budget strategy compared
to other "Aaa" countries, such as Canada and Germany.

"Weaker fiscal policymaking that leads to persistently high fiscal deficits and
higher than expected interest costs would put pressure on the US rating or
outlook," Moody's said.

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