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 AvatarMichael BG 21st Jul - 2:04am
    Well done Caron for putting such a positive spin on it. As a pessimist I was not very impressed. You wrote, “The economy – as...
  • User AvatarJoebourke 21st Jul - 1:44am
    Peter, the trade deficit has been at worryingly high levels for some time and an over-valued exchange rate has exacerbated the deficits. Overseas Sterling reserves...
  • User AvatarKatharine Pindar 21st Jul - 1:36am
    'We know what we believe and our values, it is called liberalism... our vision must be built on our liberalism and our policies be created...
  • User AvatarMichael BG 21st Jul - 1:30am
    @ PJ I now understand your logic, but I think it is flawed. The pledge was not to keep tuition fees at £3,000, it was...
  • User AvatarMike S 21st Jul - 1:10am
    Ok Paul - maybe not the best term to choose. How do councils work? - unelected members are consulted yes, but who is responsible for...
  • User Avatarpaul holmes 21st Jul - 12:39am
    Mike S. Juniors? You clearly have a very different view to me of what it means to be a member of a democratic Political Party....