The rating agency Moody’s said on Monday that a US government shutdown would be negative for its credit profile as it would suggest institutional and governance weakness compared to other countries, although the economic impact would likely be short-lived.
U.S. government services would be disrupted and hundreds of thousands of federal workers would be furloughed without pay if Congress does not provide funding for the fiscal year that begins Oct. 1.
The release of important U.S. economic data, crucial for policymakers and investors, will also be suspended indefinitely in the event of a federal government shutdown.
“A closure would be negative for the US sovereign credit profile”Moody’s, which has an A+ rating for the United States Government, said in a statement.
“In particular, it would show the significant limitations that increasing political polarization imposes on fiscal policymaking at a time of declining fiscal strength, amid rising deficits and deteriorating debt affordability.”indicated the firm.
Source: Reuters
Source: Gestion
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