We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Triple-A credit rating ‘at risk’


Moody’s keeping a close eye Britain’s economic progress

Article comments

The UK’s triple-A credit rating would be put at risk if growth in the economy were to slow and fiscal consolidation policies were scaled back, the rating agency Moody’s said on Wednesday.

Doubts have been raised in recent weeks over the feasibility of the government’s aim of almost eliminating a budget deficit of close to 10 percent of GDP in four years as economic growth remains distinctly sluggish.

“Moody's has the UK at a triple-A rating with a stable outlook,” a Moody's spokesman told Reuters.

“However, as we've been saying for a while, in a situation of lower growth combined with weaker than expected fiscal consolidation, we would reconsider our stance,” he added.

Investors took fright earlier on Wednesday after news agency Market News International quoted a Moody's analyst as raising doubts over the outlook for the UK's triple-A rating, causing September gilt futures to plunge by almost half a point.

However, the contract subsequently recovered from most of its losses and analysts said the report stated nothing new and served merely as a reminder of some of the risks ahead.

Share:

Comments

Triple-A credit rating ‘at risk’
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Tesco sees 6% decline in annual profit

UK market leader faces up to 1.4% fall in like-for-like salesmore ..

Yahoo on the right path, says CEO

Marissa Mayer’s comments follow a 20 percent decline in quarterly earningsmore ..

Debenhams to increase investment in distribution centre automation

The retailer wants to cut distribution costs as omni-channel demands risemore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *