US Credit Rating Unaffected by Potential Government Shutdown, Says Fitch; Moody's Warns of Credit Negative Impact

Fitch Ratings, which downgraded the US credit grade two months ago, stated that a potential government shutdown would not affect the nation's rating. Fitch cautioned about a possible government shutdown but said it would not impact the US sovereign rating because it already reflects the country's governance issues. On the other hand, Moody's warned that a government shutdown would be "credit negative" for the US sovereign and could harm the country's credit rating. Moody's stated that a shutdown would underscore the weakness of US institutional and governance strength. S&P Global Ratings also mentioned that a government shutdown would threaten the economy but likely would not challenge the country's sovereign debt rating.