A looming US government shutdown threatens the economy, but probably won’t challenge the country’s sovereign debt rating, said Joydeep Mukherji, managing director at S&P Global Ratings.
In contrast with the US government debt-ceiling impasse earlier this year, “a shutdown does not raise the risk of an event of default,” said Mukherji in an email. “Such an outcome would affect economic activity but is not likely to have an impact on the sovereign rating.” S&P released a report on the impact of the shutdown for the US public finance sector on Friday.
If a shutdown begins on Oct. 1, S&P expects “the…
