Europeans Will Have Harder Time Buying US Debt With Moody’s Move

European investors interested in funding US infrastructure projects will have a harder time now that a major ratings agency stopped giving its stamp of approval.

These investors had relied on Moody’s Investors Service to provide endorsements, which are standardized comparisons with US ratings that allowed them to meet regulatory requirements. Moody’s is phasing this service out by April.

Its move will have an adverse impact on US borrowing for projects like bridges, schools and roads, said Vikram Rai, head of municipal markets strategy at Wells Fargo & Co. Moody’s decision will also prompt some UK and EU investors to ...