Scope’s experts point to, among other things, the shutdown of American government services that has now lasted more than three weeks. Because Democrats and Republicans cannot agree on a budget, the US government has sent hundreds of thousands of civil servants home without pay.
As long as the shutdown continues, it will reduce the predictability of American policy, according to Scope, which has been critical of American creditworthiness for some time. It warns that the risk of policy mistakes is now higher, while the ability of the US Congress to tackle structural problems has diminished.
Borrow more expensive
Larger credit rating agencies such as Fitch, Moody’s and S&P also no longer give the US their highest rating. The US lost its last top rating among the big three after a downgrade by Moody’s in May. The International Monetary Fund (IMF) also expressed concerns last week about the ever-increasing US government debt.
Judge puts an end to US layoffs during shutdown
The lowering of the credit rating – at Scope the US is now three steps below the highest level – could make it more difficult for the US government to borrow money at favorable interest rates. Investors lend money more easily and at lower interest rates to governments with a good rating. They are then more certain that they will get their money back.