Market News
The U.S. Doesn’t Have a Perfect Credit Rating Anymore. Investors Shouldn’t Worry Yet. - BARRON'S
BY Laura Sanicola
After the closing bell on Friday, Moody’s became the last major credit-rating firm to downgrade U.S. sovereign debt from its perfect AAA status to Aa1. The firm argues that the U.S. is on a trajectory to increase entitlement spending—without the necessary government revenues to keep interest payment ratios at levels similar to other sovereign nations.
While the impact of the downgrade on bond markets isn’t clear yet, investors may not yet have to worry about major near-term impacts to U.S. equities or Treasury yields, money managers told Barron’s.
