Tag Archives: credit agencies

UK loses its triple-A rating – George should’ve listened to Danny

The BBC reports tonight’s predictable news:

UK’s AAA credit rating cut to Aa1 by Moody’s
The UK has had its AAA credit rating cut by Moody’s, based on its expectation that growth will “remain sluggish over the next few years”. The ratings agency became the first to lower the UK from its highest rating, to Aa1. … The UK’s net sovereign debt was the equivalent of 68% of the country’s annual economic output, or GDP, at the end of last year. All three major credit agencies last year put the UK on “negative outlook”, meaning they could downgrade its rating if

Posted in News | Also tagged , and | 54 Comments

Danny Alexander: UK’s triple-A credit rating “not be-all and end-all”

Lib Dem chief secretary to the treasury Danny Alexander has signalled an interesting shift in the government’s economic approach, downplaying the significance to the economy of the UK’s continuing triple-A credit rating. Here’s what he told the BBC (courtesy of PoliticsHome):

“The credit rating is not the be-all and end-all. What matters is have we got the right policy mix for the country to get people back into work, to support economic growth, to deal with the huge problems in our public finances and the credit agencies reflect on those things and the ratings they give are a reflection of

Posted in News | Also tagged , and | 1 Comment

LibLink … Chris Huhne: These mystery men can break governments

Lib Dem shadow home secretary Chris Huhne has an article in today’s Times noting that how much it costs the Treasury to borrow money depends on three ratings agencies … and asks the crucial question: are they fit to wield this power?

Chris’s credential for writing an article outside his brief? Well, he founded the sovereign group at Fitch Ratings, and was group managing director. Here’s an excerpt:

Last week Moody’s — one of the big three international ratings agencies — warned that the UK’s top bond rating would be under threat if Britain failed to sort out its public finances

Posted in LibLink | Also tagged , and | 4 Comments
Advert



Recent Comments

  • User AvatarGlenn 6th Dec - 2:23am
    If you ask me, and since you don't I'll answer anyway, if the pro EU case is that strong upon leaving the electorate will eventually...
  • User AvatarTynan 6th Dec - 1:47am
    Does anyone think that if Scotland or leave had won, that their liberal ideals would be supporting a further referendum within the timescale/s now being...
  • User AvatarTynan 6th Dec - 1:38am
    More heat than light on both sides here. I think the problem is that the government, and opposition never thought they would lose, therefore there...
  • User AvatarDavid Evans 6th Dec - 12:50am
    Paul, Good on you and the Chesterfield team. I will get down one more time if I can.
  • User AvatarAl 6th Dec - 12:28am
    Interesting article but the arguments in it equally apply to the 2014 referendum. Indeed they apply even more so because Brexit fundamentally changes the situation...
  • User AvatarStephen Johnson 6th Dec - 12:12am
    It was most unfortunate that the Referendum so poorly planned. Half of us don’t want to be in the EU. Half of us do. What...