Moody, credit rating and downgrade
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Financial ratings firm Moody’s Ratings downgraded the U.S. government’s credit ratings Friday, citing its rising debt and interest in a move that underscores a ballooning federal budget deficit, making it the last of the big three firms to downgrade the government’s credit.
Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.
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Al Jazeera on MSNWhy has the US lost its AAA credit rating, and why does it matter?Loss of Moody’s highest rating comes amid concerns about Washington’s widening budget deficit and fiscal trajectory.
All three major U.S. stock market indexes rose Monday afternoon, following an earlier selloff sparked by long-dated Treasury yields surpassing the 5% mark after the financial ratings agency Moody’s downgraded the U.
The Treasury plans to auction $16 billion of 20-year bonds, with results due just after 1 p.m. Eastern. The offering will mark the first auction of longer-duration Treasury bonds since Moody’s on Friday became the third and final rating agency to strip the U.S. of its top Triple-A credit rating.
Royal Caribbean Cruises Ltd. regained its investment-grade status on Monday after Moody’s Ratings upgraded the global cruise operator’s credit rating on a strong demand outlook and better credit metrics.