Moody's said Tax Cuts and Jobs Act is......>

US BONDS: Moody's said Tax Cuts and Jobs Act is "broadly credit positive for US

cos." as "sweeping legislation makes many changes to the tax code, some of which

will suppress house prices and are credit negative for other sectors, including

the US sovereign" rating. 

- Its new report said "overall," tax cuts' "stimulative impact on the economy

from increased consumption and investment spending from the private sector is

likely to be modest. Ultimately, Moody's estimates that the tax legislation will

spur economic growth in the range of 0.1% to 0.2% of one percent of GDP, due

mostly to increased household consumption."

- Mooday's said for "corporate sector, the lower rate and full deductibility of

capital spending are credit positive", "largely outweigh" cost of "limitatn on

interest deductibility for all but a handful of investment grade US cos. Limits

on int. deductibility will leave highly leveraged companies worse off." Bks

"will benefit" from "net reduction in lenders' tax liabilities" & an "associated

improvement in profitability, which will mostly benefit shareholders. The bill

is also net positive for asset managers and for insurers," it said.