Moody's and S & P to review the UK's AAA rating after the 2009 budget.

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Thought we were in the krap ?, if this comes to pass, the !!!!!! will go straight through the fan.

The prospect of the UK losing its AAA sovereign credit rating, resulting in higher interest rates for companies and households, moved a step closer after ratings agencies voiced fears about the UK's vast public debt burden.


Moody's and Standard & Poor's are reviewing the UK's rating in light of the Chancellor's revelation in the Budget that national debt will reach £1.4 trillion over the next five years. Spain, Ireland, Greece and Portugal have already been downgraded.
Arnaud Mares, lead analyst at Moody's for the UK, said: "Treasury projections that public sector net borrowing will remain above 5pc of GDP five years from now... are a cause for concern. This suggests that fiscal policy will have to be tightened much further than currently envisaged. The alternative would be that the Government chooses to live with a permanently higher debt burden which would likely have rating implications over time."

http://www.telegraph.co.uk/finance/financetopics/budget/5209225/Borrowing-puts-UKs-AAA-rating-in-danger-after-Budget-2009.html

Generali

Moody's have all European sovereign debt under review right now so the Telegraph's story is a little disingenuous.

Degenerate

Credit rating agency to review credit rating. This is news? Wake me up if and when they actually change it.

Generali

Degenerate wrote: »

Credit rating agency to review credit rating. This is news? Wake me up if and when they actually change it.

'Under review' is a meaningful phrase as it normally means they have reason to think the rating should be changed. Clearly if you have a AAA/Aaa rating then any change has to be a bad thing as the only way is down.

The Telegraph article seems (to me) to imply that the UK has been singled out for treatment. It hasn't.

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Degenerate wrote: »

Credit rating agency to review credit rating. This is news? Wake me up if and when they actually change it.

Well the gilt prices have slid for a 3rd day running, so it maybe time for you to wake up.

http://www.telegraph.co.uk/finance/financetopics/budget/5206089/Gilts-continue-to-slide-as-Budget-2009-sparks-UK-sovereign-rating-fears.html

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Seeing as someone missed this and started another thread, maybe a bump is in order.;)

Rochdale_Pioneers

Glad others have made the point that "Credit Ratings Agency does its job" is an utter non-story. The "our credit rating is at risk" is a spin added by the newspaper.

StevieJ

ad9898 wrote: »

Thought we were in the krap ?, if this comes to pass, the !!!!!! will go straight through the fan.


http://www.telegraph.co.uk/finance/financetopics/budget/5209225/Borrowing-puts-UKs-AAA-rating-in-danger-after-Budget-2009.html

You mean the UK actually has a AAA rating? you surprise me after reading all your posts

purch

"Treasury projections that public sector net borrowing will remain above 5pc of GDP five years from now... are a cause for concern. This suggests that fiscal policy will have to be tightened much further than currently envisaged. The alternative would be that the Government chooses to live with a permanently higher debt burden which would likely have rating implications over time."

This could become a News story in a few years time, but currently it is just 'noise'.

The Government (whoever it will be by then) will be faced by tough Fiscal and Monetary choices, and whatever those choices are will decide whether it is this that becomes News or something else entirely different.

lostinrates

StevieJ wrote: »

You mean the UK actually has a AAA rating? you surprise me after reading all your posts

Didn't pretty much everything we once held dear?

inspector_monkfish

10:48 24Apr09 MOODY'S SAYS OUTLOOK ON UK'S AAA RATING STABLE, NOT UNDER REVIEW
10:56 24Apr09 Moody's say UK credit rating not under review

LONDON, April 24 - Credit rating agency Moody's said on Friday that its triple-A rating for British government debt was not under review.

"Note that the UK rating is Aaa, with a stable outlook -- the rating is not under review," said Moody's spokesman Francesco Meucci.

Britain's Daily Telegraph newspaper had said in an article on Friday that Moody's and rival credit rating agency Standard & Poor's were reviewing their ratings for British sovereign debt after finance minister Alistair Darling's 2009/10 Budget, which forecast record borrowing.