REUTERS/Jonathan Ernst Acquire Licensing RightsNEW YORK, Sept 25 (Reuters) - A U.S. government shutdown would negatively impact the country's credit, credit rating agency Moody's said on Monday, a stern warning coming one month after Fitch downgraded the U.S. by one notch on the back of a debt ceiling crisis.
Moody's has an "Aaa" rating for the U.S. government with a stable outlook - the highest creditworthiness it assigns to borrowers.
"Fiscal policymaking is less robust in the U.S. than in many Aaa-rated peers, and another shutdown would be further evidence of this weakness," Moody's said in a statement.
The economic impact of a shutdown would likely be limited and short-lived, with the most direct economic impact caused by lower government spending.
Of course, the longer the shutdown lasts, the more negative its impact would be on the broader economy, said Moody's.
Persons:
Jonathan Ernst, Moody's, Fitch, William Foster, Foster, Davide Barbuscia, Megan Davies, Sharon Singleton, Josie Kao
Organizations:
U.S . Capitol, REUTERS, U.S, Reuters, P Global, Aaa, Republican Party, Thomson
Locations:
Washington , U.S, U.S, Washington, Aaa, Moody's