"Political Chaos and Government Shutdown Fears Threaten U.S. AAA Rating"

1 min read
Source: MarketWatch
"Political Chaos and Government Shutdown Fears Threaten U.S. AAA Rating"
Photo: MarketWatch
TL;DR Summary

Wall Street is concerned that the U.S. could lose its last AAA credit rating due to political chaos and the potential for another government shutdown. The U.S. has already faced downgrades in the past, and Moody's warned that a shutdown would be a credit negative for the country. The sustainability of U.S. debt is less of a focus for credit-rating firms than dysfunction in the decision-making process of elected officials. While a third downgrade would be an unpleasant event, the market's memory of it would likely be short. The rising Treasury yields are also causing concern in the financial markets.

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