Does Moody’s US downgrade matter?

On Friday, Moody’s downgraded the US credit rating from Aaa to Aa1, marking the loss of its last top rating. While past downgrades have caused market turmoil, analysts suggest this downgrade may have minimal impact on financial markets, as banks and collateral management practices are unlikely to change significantly. However, Moody’s may face backlash similar to that experienced by S&P following its 2011 downgrade, with potential political repercussions and scrutiny from the SEC.