Moody's warns government shutdown could harm US credit rating

Moody's Investors Service has warned that a potential government shutdown in the United States could negatively impact the country's credit rating. While short-lived shutdowns are unlikely to disrupt the economy, they would highlight the weakness of US institutional and governance strength compared to other AAA-rated sovereigns. Moody's is the only major credit rating agency to assign the US an outstanding rating of AAA. The economic impacts of a shutdown would be concentrated in areas with a significant government presence, and the effects would depend on the duration of the shutdown. A prolonged shutdown could impair national business and consumer confidence and trigger adverse reactions in financial markets.