Moody's Downgrade Reflects Scale of Fiscal Challenge -- Market Talk
Dow Jones05-20
1346 ET - Moody's U.S. downgrade removed the final top-score U.S. credit rating from any of the three major ratings firms. The downgrade itself is unlikely to weigh on U.S. debt markets but the fiscal deterioration it represents will unavoidably take a toll, Schroders portfolio manager Neil Sutherland tells The Wall Street Journal. "That much debt: It's not a default issue, it's a growth concern," Sutherland says. The growing debt load will increasingly crowd out private-sector investment and absorb more of the government's fiscal capacity, he projects. (matt.grossman@wsj.com, @mattgrossman)
(END) Dow Jones Newswires
May 19, 2025 13:46 ET (17:46 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments