After Moody’s Ratings recently downgraded the United States’ long-term credit rating, this expert has highlighted that the rating agency had an investment grade rating on the U.S. debt even ahead of the 2008 global financial crisis.
What Happened: Moody’s recently changed its rating from Aaa to Aa1 and shifted its outlook from “negative” to “stable.” This decision means the U.S. has now lost its top-tier “triple-A” rating from all three major credit agencies, following similar downgrades by Fitch and S&P Global.
However, experts like Ryan Detrick, from Carson Research, offer a perspective of measured reaction. In a post on X, Detrick pointed out that Moody’s downgrade is not unprecedented, as other agencies have already taken similar action.
He also highlighted a historical context, noting, “Also, don’t forget the day Lehman went under (9/15/08), Moody’s had it rated A2.”
This suggests that even leading credit rating agencies can maintain relatively high ratings on entities shortly before significant financial distress. Detrick concluded that the recent downgrade …