We are writing to inform you of a recent development that may be of interest regarding the U.S. government’s credit rating. On Friday, after the close of equity markets, Moody’s Investors Service announced a downgrade of the U.S. long-term credit rating from Aaa to Aa1.

This decision was driven by concerns over the government’s substantial fiscal deficits and the increasing burden of interest costs. With this move, Moody’s joins the other two major credit rating agencies — S&P, which downgraded the U.S. in 2011, and Fitch, which followed in 2023 — in assigning a rating below the highest tier.

While this downgrade was largely anticipated and is arguably the least surprising of the three, we are actively monitoring the situation for any potential impacts on financial markets and client portfolios. At this time, market reactions have been relatively muted.

Should there be any implications for your investment guidelines or portfolio strategy, we will reach out to you directly in the coming days.

As always, we remain committed to keeping you informed and supporting your financial goals with thoughtful, proactive guidance.

Please don’t hesitate to contact your advisor with any questions or concerns.