Just Friday we mentioned Fitch Credit Agency Played Eye Spy and downgraded the USA credit worthiness by a very small amount from AAA to AA+…. the Eye Spy was due in part to the very large government spending acceleration number that showed up in the overzealous GDP print ….
Not to be outdone, a fellow credit agency, Moody’s chimed in as well
Moody’s Downgrades 10 Banks – Keep an eye on Others
As reported here by Reuters, Moody’s jumped into the pool and downgraded a slew of banks as well as put many on watch….
As mentioned in our post on the Fitch Downgrade, the US interest rates moved up after the ratings increase…. it would be expected all banks involved to see their standards tighten as well as their borrowing costs rise as well….
Why is this important you may ask?
This second rating decrease, by Moody’s will in effect help the FOMC in their pursuit of slowing the economy. Banks will broadly tighten lending standards!!
Have a Great “Moody’s Jumps into the Pool Downgrade” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth