Ratings agency Moody’s said on Monday this week 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.
“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,” the firm said.
With information from Reuters