OCBC remains bullish on investment outlook despite US credit downgrade by Moody’s
Past downgrades by rating agencies did not have a lasting impact on markets, says OCBC
[SINGAPORE] Local bank OCBC remains positive about the investment outlook for the next one year, despite Moody’s downgrade of the United States’ credit rating on Friday (May 16).
The ratings agency downgraded the US from “AAA” – the highest rating for credit reliability – to “AA1”, citing rising fiscal deficits and higher interest payments.
Nevertheless, Vasu Menon, managing director for investment strategy at OCBC, said on Sunday that while the downgrade could initially weigh on US stocks, US government debt still enjoys the second-highest rating.
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