UK's credit rating downgraded by Moody's

worldtraveller

The UK's credit rating has been cut over concerns about the UK's public finances and fears Brexit could damage the country's economic growth.

Moody's, one of the major ratings agencies, downgraded the UK to an Aa2 rating from Aa1.

It said leaving the European Union was creating economic uncertainty at a time when the UK's debt reduction plans were already off course.

Downing Street said the firm's Brexit assessments were "outdated".

The other major agencies, Fitch and S&P, changed their ratings in 2016, with S&P cutting it two notches from AAA to AA, and Fitch lowering it from AA+ to AA.

BBC News

Thrugelmir

Hammond will have to tread carefully when presenting the next budget. Cannot afford to take the foot off the austerity agenda pedal. Much work still to be done.

baldelectrician

I remember the Scottish referendum and the predictions of the end of the world if we voted indy- one of the dire predictions was that Scotland would have a lesser credit rating

kabayiri

Thrugelmir wrote: »

Hammond will have to tread carefully when presenting the next budget. Cannot afford to take the foot off the austerity agenda pedal. Much work still to be done.

I think he is stuffed personally.

Corbyn will back him into a corner with the pay increases row for key PS workers.

Once you open that door, the pressure for it to extend to others will only increase.

A round of PS-initiated wage inflation could easily blow any deficit plans out of the water.

The NHS will need another shot in the arm to survive the winter as well. More people -> more patients -> more money.

Thrugelmir

baldelectrician wrote: »

I remember the Scottish referendum and the predictions of the end of the world if we voted indy- one of the dire predictions was that Scotland would have a lesser credit rating

A timely reminder perhaps of how tough an IScotland would find the international money markets.

Thrugelmir

kabayiri wrote: »

I think he is stuffed personally.

Corbyn will back him into a corner with the pay increases row for key PS workers.

Once you open that door, the pressure for it to extend to others will only increase.

A round of PS-initiated wage inflation could easily blow any deficit plans out of the water.

The NHS will need another shot in the arm to survive the winter as well. More people -> more patients -> more money.

Far more going on than just PS pay. Corbyn cannot simply say all public sector workers should be paid more without having a creative solution to fund the plan. Negative campaigning backs him into the corner. Hammond appears to have some wriggle room though.

A_Medium_Size_Jock

This downgrade is not especially due to worsening UK forecasts as such IMHO, it is more to do with global "jitters" and continuing uncertainty over many things. It is this uncertainty they don't like.
Trump; Kim; Putin etc. etc.
Heck, S&P downgraded China this week too:
http://www.bbc.co.uk/news/business-41349662
And it's only weeks since the USA was threatened as well:
http://uk.businessinsider.com/fitch-us-credit-rating-downgrade-debt-ceiling-2017-8?r=US&IR=T

Marktheshark

I would think after Mays kick it down the road until after the next election Brexit announcement we will see the recent uplift and falling unemployment reversed.
The new found confidence that freedom was bringing has just been sunken outside the harbour by a treacherous treasonous pirate.

mayonnaise

Marktheshark wrote: »

I would think after Mays kick it down the road until after the next election Brexit announcement we will see the recent uplift and falling unemployment reversed.
The new found confidence that freedom was bringing has just been sunken outside the harbour by a treacherous treasonous pirate.

That new found confidence which plummeted us into the economic growth slow lane?

elantan

Thrugelmir wrote: »

A timely reminder perhaps of how tough an IScotland would find the international money markets.

Or maybe a warning that Scotland would be better out of the UK ... it can be looked at many ways

A_Medium_Size_Jock

elantan wrote: »

Or maybe a warning that Scotland would be better out of the UK ... it can be looked at many ways

Perhaps you would be kind enough to explain how you think an Independent Scotland could possibly obtain a better credit rating than the UK when Moody's have previously specifically stated otherwise?

Scotland would likely hold a lower credit rating than the rest of the UK immediately after independence, according to the ratings agency Moody's.

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-27247870