Uk Election Outcome No Direct Threat To Aaa Rating

inspector_monkfish

11:18 07May10 MOODY'S: UK ELECTION OUTCOME NO DIRECT THREAT TO AAA RATING


The following is a press release from Moody's Investors Service:



London, 07 May 2010

The outcome of the UK general elections does not directly threaten the UK government's Aaa rating, says Moody's Investors Service in a new report published today.

"Moody's stance assumes that the incoming economic team can muster
convincing parliamentary support for a fiscal adjustment that is no
looser nor slower than was outlined by all three political parties during
their respective pre-election campaigns," said Arnaud Mares, Senior Vice
President in the Sovereign Risk Group and lead analyst for the UK's
sovereign rating.

Given the UK's budget challenges, the implementation of fiscal tightening
is key to Moody's stable outlook on the UK government's Aaa rating.

The analyst adds that the differences between the parties' fiscal plans
are actually rather minor, so they should not prevent compromise.

According to Moody's, the absence of a one-party majority does not
necessarily weaken the government's ability nor its inclination to
stabilise public debt metrics in the coming years. It will also not
prevent the government from doing so at levels that are consistent with
its current Aaa rating.

"Cross-party support for consolidation will now be tested in a new
Budget, probably by the end of June, and the level of political consensus
it commands," says Mr. Mares.

"The lack of a one-party majority will undoubtedly create political
uncertainty in the short and perhaps also the medium to longer term",
says Mr. Mares. "Nevertheless, Moody's view is that it is not the
political but the policy outlook that matters most."

Moody's new Special Comment entitled, "UK General Election: Hung
Parliament No Direct Threat to UK's Aaa Rating" is available on
www.moodys.com.

Really2

Thank Marco FU for that.;)

lemonjelly

Really2 wrote: »

Thank Marco FU for that.;)

You wouldn't let it lie, would you!;)

Really2

You must admit that was one great comback. I even made myself LOL when I thought of it. (And knew IM would take the joke well)

chucky

inspector_monkfish wrote: »

11:18 07May10 MOODY'S: UK ELECTION OUTCOME NO DIRECT THREAT TO AAA RATING

that can't be true!!!! :eek:

i read on this very forum that they were calling in some firm called the IMF straight after the election.

these Moodys people haven't got a clue compared to the armchair economists we have on this forum!!

lemonjelly

Really2 wrote: »

You must admit that was one great comback. I even made myself LOL when I thought of it. (And knew IM would take the joke well)

Actually, the best comeback was yours yesterday, when you announced it was a fu queue!

I'm still giggling at that one....:D

lemonjelly

chucky wrote: »

that can't be true!!!! :eek:

i read on this very forum that they were calling in some firm called the IMF straight after the election.

these Moodys people haven't got a clue compared to the armchair economists we have on this forum!!

You are probably more correct than you'd like to believe...
https://forums.moneysavingexpert.com/discussion/2423913=

inspector_monkfish

lemonjelly wrote: »

Actually, the best comeback was yours yesterday, when you announced it was a fu queue!

I'm still giggling at that one....:D

thats the one he means you marco fu-kin wally !!;)

chucky

lemonjelly wrote: »

You are probably more correct than you'd like to believe...
https://forums.moneysavingexpert.com/discussion/2423913=

that was the run up - it's different now

inspector_monkfish

Really2 wrote: »

Thank Marco FU for that.;)

HEY!! LEAVE ME OUT OF THIS....

inspector_monkfish

11:35 07May10 S&P VIEW ON U.K. CREDITWORTHINESS IS UNCHANGED AFTER ELECTION

11:40 07May10 S&P view on U.K. creditworthiness unchanged after election

(The following statement was released by the ratings agency)

May 7 - Standard & Poor's Ratings Services said today that following the general election, its views on the U.K.'s sovereign creditworthiness are unchanged.

The long-term sovereign rating remains 'AAA' with a negative outlook and, as we have said previously, we expect to review the rating after we have assessed the details of the new government's medium-term fiscal strategy. We expect this review to be completed by the end of the year.

The complexion of the new government is not, in itself, a rating factor for us. Instead, our focus is on whether the government's fiscal consolidation plan to be unveiled in due course is likely or not, in our view, to put the U.K. government debt burden on a secure downward trajectory over the medium term. We assigned the negative outlook in May 2009, based on our belief that, in the absence of the implementation of a strong fiscal strategy, the U.K.'s net general government debt burden may approach a level incompatible with a 'AAA' rating.

We currently estimate the U.K.'s general government debt to rise to 77% of GDP in 2010 and to approach 100% by 2014 (compared with 44% in 2007), notwithstanding the Treasury's GBP11 billion (0.8% of GDP) downward revision to its borrowing estimate for 2009-2010, announced in March.

We expect that the institutional framework of budgets, pre-budget reports, and spending reviews to be undertaken by the new government will enable us to gain additional insight into medium-term fiscal trends by the end of 2010.