Outlooks 2026: How Political Polarization Strains Credit

Differing views on politics and the economy are making it harder for lawmakers around the world to agree on issues like trade, immigration, regulation and fiscal policy.

On this episode of “The Big Picture”, Moody’s Ratings experts unpack the risk to credit in 2026 and repercussions for businesses and consumers.

Learn more at moodys.com/outlooks

Host: Paloma San Valentin, Managing Director, North America Corporate Finance, Moody’s Ratings

Guest: Atsi Sheth, Chief Credit Officer, Moody’s Ratings

Related Research:

• Credit Conditions – Global – 2026 Outlook – Politics, innovation and extreme weather will drive credit conditions 10 Nov 2025 (https://www.moodys.com/research/Credit-Conditions-Global-2026-Outlook-Politics-innovation-and-extreme-Outlook--PBC_1461601?cid=web-wbssts-19437#290612199861c31d1036b185b4e69b75)
• Sovereigns - Global - 2026 Outlook - Negative as policy, political risks outweigh pockets of resilience 13 Nov 2025 (https://www.moodys.com/research/Sovereigns-Global-2026-Outlook-Negative-as-policy-political-risks-Outlook--PBC_1462208?cid=web-wbssts-19438#290612199861c31d1036b185b4e69b75)
• Government Policy – US – How credit effects of tax and spending shifts vary across sectors 31 Jul 2025 (https://www.moodys.com/research/Government-Policy-US-How-credit-effects-of-tax-and-spending-Sector-In-Depth--PBC_1454574)

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