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Breaking News - Moody's could downgrade UK AAA rating

Spiv_2
Spiv_2 Posts: 280 Forumite
edited 8 June 2011 at 7:35AM in Debate House Prices & the Economy
Low Growth could lead to UK downgrade


http://imarketnews.com/node/31892
The UK could lose its prized 'Aaa' credit rating if growth remains weak and the coalition government fails to meet its fiscal consolidation targets, a senior analyst at ratings agency Moody's has told Market News International. Sarah Carlson, VP-Senior Analyst at Moody's, told MNI that weak growth and fiscal slippage could see the country's 'debt metrics' deteriorate to a point that would trigger a downgrade.
Carlson also said that due to their sheer size the UK's austerity plans have a degree of 'implementation risk'.
"As is true of any large fiscal consolidation effort, the government's austerity plans entail some implementation risk. Moreover, a multi-year austerity programme of this magnitude is a political challenge," she said.
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Comments

  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Good to see Moody's putting on the pressure around growth.

    It's the only way out.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    BREAKING NEWS!!!!!! JUST BREAKING RIGHT NOW!!!!!!! LOOK!!!!!


    At some point in the future, if britain stops being AAA, Moody's will downgrade it to less than AAA.

    Yeah, definitely breaking news, that.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    Good to see Moody's putting on the pressure around growth.

    It's the only way out.

    It needs to be genuine, sustainable growth though. There's no point in borrowing to spend on civil service salaries.
  • purch
    purch Posts: 9,865 Forumite
    Moody's could downgrade UK AAA rating

    Only about the 5th time that they have said this in the last 2 years :eek:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • IronWolf
    IronWolf Posts: 6,426 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Hows that new? If UK doesnt take care of its debt and show some growth, its debt rating will be downgraded. Everyone knows this
    Faith, hope, charity, these three; but the greatest of these is charity.
  • sabretoothtigger
    sabretoothtigger Posts: 10,035 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    Moodys is biased. I imagine all their ratings are skewed to their own perception of risk
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    They must have got wind that the Coalitions University savings are going to cost a fortune to finance, as the number of £9K courses goes upwardly mobile :eek:
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    StevieJ wrote: »
    They must have got wind that the Coalitions University savings are going to cost a fortune to finance, as the number of £9K courses goes upwardly mobile :eek:

    Yeah what a surprise that a government 'saving' exercise should end up costing more than originally thought. They were totally naive thinking that most Universities woudn't charge the full £9000 whack, even more debt for the taxpayer to underwrite - well done to all concerned on that one :T
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    MPC makes yet another 'on-hold' decision tomorrow. But that's not any kind of 'news' is it?
    .....under construction.... COVID is a [discontinued] scam
  • chewmylegoff
    chewmylegoff Posts: 11,466 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Heyman wrote: »
    Yeah what a surprise that a government 'saving' exercise should end up costing more than originally thought. They were totally naive thinking that most Universities woudn't charge the full £9000 whack, even more debt for the taxpayer to underwrite - well done to all concerned on that one :T

    classic govt accounting, move it from one pot to another and call it an asset instead of expenditure. the cost of providing higher education can now be deferred and written off in the future when all the loans don't get repaid.
This discussion has been closed.
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