The government expects Moody’s recent downgrade of the United States’ credit rating to have a limited impact on the market.

The finance ministry presented the assessment on Monday in a conference call with officials from the Bank of Korea and related organizations.

In the meeting, chaired by Deputy Finance Minister Yoon In-dae, the participants concluded that Moody’s downgrade was a belated move to align with the ratings of other credit rating agencies. 

Given that Moody’s changed its outlook on the U.S. rating to negative a year ago, the participants said the latest downgrade was somewhat anticipated and its impact on the market is likely to be limited.
 
Moody’s cut the U.S. government’s long-term credit rating from Aaa to Aa1 late Friday, citing escalating deficits and the increasing burden of refinancing debt amid elevated interest rates.

The downgrade brings Moody’s in line with Fitch and S&P, which previously stripped the U.S. of its top-tier rating.