Economy

Moody's: Limited Risks to U.S. Credit Profile from Banking Crisis

Moody's anticipates minimal impact on the U.S. credit profile from the recent banking sector turmoil unless the situation deteriorates further.

, and Uzay Erol

March 29, 2023 . 7:22 PM

1 min read

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Moody's Outlook on U.S. Sovereign Credit Profile

Rating agency Moody's (NYSE: MCO) announced on Wednesday that it foresees limited risks to the United States' sovereign credit profile due to the recent turbulence in the nation's banking sector, provided these strains do not worsen.

LATEST: Moody's predicts that the US banking sector will experience some indirect fiscal costs due to weaker growth, but the impact is expected to be moderate.
— Paryte (@Parytecom) March 29, 2023

Increasing Banking Sector Risk in the U.S.

Moody's acknowledged that the swift decline in the operating environment for U.S. regional banks (Aaa stable) over the past fortnight had revealed greater banking sector risk than previously considered in the sovereign's credit profile.