The firm attributed the downgrade to an increase in government debt, a move that clouds the nation’s status as the world’s highest-quality sovereign borrower. The firm joined Fitch Ratings and S&P Global Ratings in grading the world’s biggest economy below the top, triple-A position.
US stocks declined and Treasury yields rose after Moody’s Ratings downgraded the US credit rating, citing an increase in government debt and a higher interest burden.
An exchange-traded fund tracking the S&P 500 Index fell 1% in postmarket trading after the agency downgraded the nation’s score to Aa1 from Aaa. The Invesco QQQ Trust Series 1 ETF declined 1.3%, while Treasury futures closed at session lows. The Bloomberg Dollar Index paused trading at 4 p.m. in New York before the announcement by Moody’s.
