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

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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

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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

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Recent Comments

  • User AvatarEddie Sammon 3rd Sep - 1:01am
    This has the potential to get nasty and I don't like what I'm seeing. The UK and the EU need to be careful not to...
  • User AvatarJoe Bourke 3rd Sep - 12:31am
    John Dunn, Ukraine has a great deal to lose as a consequence of deteriorating relations with Russia and has sought to maintain its export trade...
  • User AvatarEddie Sammon 3rd Sep - 12:04am
    Liberals should continue arguing unfashionable causes, whilst not necessarily putting them in the manifesto. When it comes to Sterlingisation and the EU: I think Scotland...
  • User AvatarFrankBooth 2nd Sep - 11:55pm
    Tim13 - you suggested it was the cue for rump UK and Scotland to join the Euro. You'd have to deal with the implacably opposed...
  • User AvatarT-J 2nd Sep - 11:41pm
    OK, it's all very well and good to guarantee more powers, but I just don't have enough confidence in most of the people issuing that...
  • User AvatarDavid G 2nd Sep - 11:37pm
    +1 to what Martin said. The argument that current EU law or opinion doesn't allow something is pretty pathetic - the law will just have...