Moody's Archives -

US Debt Interest Costs Skyrocket 87% as New Federal Fiscal Year Begins

News Articles / Filip De Mott / November 13, 2023

Moody’s lowered its US credit outlook on Friday to “negative,” signaling a possible downgrade in the future. The ratings agency cited ballooning deficits and political dysfunction. Gross interest on Treasury debt securities jumped 87% from a year ago, fresh data showed. Interest payments reached $88.9 billion last month, as the government finances higher deficit spending. […]

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US Credit Rating Outlook Lowered to ‘Negative’ by Moody’s as Shutdown Looms

News Articles / Brie Stimson / November 10, 2023

“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.” “Continued political polarization within U.S. Congress raises the risk that successive governments will not be able to reach consensus on a

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The $1 Trillion of High Yield Debt That’s Piled Up in the Last 5 Years Is About to Have a ‘Day of Reckoning,’ Bank of America Says

News Articles / Jennifer Sor / August 28, 2023

“$1 trln in new leveraged credit last five years faces its day of reckoning,” Bank of America strategist Yuri Seliger said in a note on Friday. Most of that debt has been created by below-investment grade companies through high yield loans or bonds. Around $400 billion assets are considered to be in “pre-distress,” while $150

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As Inflation Under Biden ‘Bites’ US Consumers, Former Toys ‘R’ Us CEO Makes Dire Retail Prediction

News Articles / Madeline Coggins / August 18, 2023

“When that comes this fall, I believe it’s going to be a very difficult holiday season, certainly challenging for most retailers,” former Toys “R” Us CEO Gerald Storch said. “Every report we hear from retailers out there is that consumers are stressed, they’re reluctant to buy goods. “When you adjust for inflation, sales of physical

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Fitch Warns Multiple US Banks Face Credit Downgrade: Report

News Articles / Megan Henney / August 15, 2023

A Fitch Ratings analyst on Tuesday warned the agency may be forced to cut the credit ratings of more than a dozen banks, including some major Wall Street lenders. Another one-notch downgrade of the industry’s score, to A+ from AA-, would force Fitch to reassess ratings on each of the more than 70 U.S. banks it

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Why Fitch’s Downgrade Matters

News Articles / Greg Ip / August 9, 2023

Fitch Ratings’ decision to strip the U.S. of its triple-A credit rating last week was widely dismissed as meaningless This time, though, bond yields rose. That suggests Fitch’s action deserves our attention, not because it tells us anything new but because it joins the stack of evidence of how profoundly different, and risky, the nation’s fiscal situation

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