Jump to content
House Price Crash Forum
Sign in to follow this  

Spending Cuts Boost Britain's Chances Of Holding On To Top Credit Rating

Recommended Posts


Britain is set to keep its top triple A credit rating, with the ratings agency Moody's expected to announce today that a downgrade is unlikely despite spiralling public debt.

A downgrade, which would drive up the government's borrowing costs, looks to have been averted because of the growing political consensus on the need to cut public spending as the economy recovers, according to the Financial Times.

The FT quoted Pierre Cailleteau, head of sovereign risk at Moody's, as saying that Britain's triple A status was "resilient" and that a downgrade was "very unlikely". Moody's downgraded Ireland's triple A status in July. But it said Britain had significant advantages that meant its debt would remain affordable. A big proportion of UK debt is long-dated, which means its cost will not rise rapidly if interest rates rise.

The news came as economists declared the recession over, with official data yesterday showing mothballed factories springing back to life and rising optimism in the City stoking a new merger spree.

The FTSE 100 index of blue-chip stocks pushed close to the 5000 mark yesterday for the first time since the aftermath of Lehman Brothers' collapse 12 months ago, prompting the second multibillion pound deal of the week. On Monday, confectionery group Cadbury rejected a £10.2bn approach from the American Kraft Foods and yesterday Orange and T-Mobile announced plans to merge their UK operations in a move that will create Britain's largest mobile phone operator.

Government figures yesterday showed that Britain's hard-pressed manufacturers had cranked up production for a second successive month in August after running down stocks dramatically in the early months of the year.

Wow thank god the rating agencies have a understanding of these things.

With there track record we are in safe hands as are out investors.

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?

      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.