From Downgrade to Distress: What Moody’s Credit Cut Means for Real Estate Values

Alliance Intelligence Investor Brief May 2025

Last Friday, after the market closed, Moody’s Investors Service downgraded the outlook on U.S. sovereign debt from “stable” to “negative,” citing rising fiscal deficits, unsustainable debt trajectories, and political dysfunction. While the U.S. retains its AAA rating for now, Moody’s message was clear: the global confidence that underpins American credi…