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Britain's credit rating downgraded
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BurfordTJustice
Feb 23, 2013, 7:31:35 AM2/23/13
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Britain's credit rating downgraded from AAA to Aa1
The Government's economic strategy has been dealt a serious blow after a
leading credit ratings agency downgraded UK debt on its expectation that
growth will "remain sluggish over the next few years".
Moody's announced on Friday night that it had cut the Government's bond
rating one notch from 'Aaa' - the highest possible level - to 'Aa1'.
The move is a significant setback for Chancellor George Osborne, who has
faced criticism that his strategy for dealing with UK's huge debt burden is
failing to deliver.
Moody's pointed to "continuing weakness in the UK's medium-term growth
outlook, with a period of sluggish growth which [it] now expects will extend
into the second half of the decade".
The credit ratings agency also noted that the Government's debt reduction
programme faced significant "challenges" and that the UK's huge debts are
unlikely to "reverse before 2016".
Moody's said that despite considerable structural economic strengths, growth
is expected to be sluggish due to a combination of weaker global economic
activity and the drag on the UK economy "from the ongoing domestic public-
and private-sector deleveraging process."
However, Moody's, which is the first ratings agency to lower the UK from the
highest rating, said the outlook on UK debt is stable.
Mr Osborne responded to the downgrade by insisting he would not change
course on the Government's austerity programme.
He called Moody's decision a "stark reminder of the debt problems facing our
country - and the clearest possible warning to anyone who thinks we can run
away from dealing with those problems".
"Far from weakening our resolve to deliver our economic recovery plan, this
decision redoubles it."
"We will go on delivering the plan that has cut the deficit by a quarter,
and given us record low interest rates and record 'the UK's creditworthiness
remains extremely high' thanks in part to a 'strong track record of fiscal
consolidation' numbers of jobs."
He also took comfort that Moody's noted that "the UK's creditworthiness
remains extremely high" thanks in part to a "strong track record of fiscal
consolidation".
Mr Osborne added: "[Moody's] also make it absolutely clear that they could
downgrade the UK's credit rating further in the event of 'reduced political
commitment to fiscal consolidation'.
"We are not going to run away from our problems, we are going to overcome
them."
In his Autumn Statement in December, Mr Osborne admitted public finances
were taking longer to address than he had hoped, adding that he would be
forced to extend austerity measures by at least another year.
All three major credit agencies last year put the UK on "negative outlook",
meaning they could downgrade its rating if performance deteriorates.
The Government's economic strategy has been dealt a serious blow after a
leading credit ratings agency downgraded UK debt on its expectation that
growth will "remain sluggish over the next few years".
Moody's announced on Friday night that it had cut the Government's bond
rating one notch from 'Aaa' - the highest possible level - to 'Aa1'.
The move is a significant setback for Chancellor George Osborne, who has
faced criticism that his strategy for dealing with UK's huge debt burden is
failing to deliver.
Moody's pointed to "continuing weakness in the UK's medium-term growth
outlook, with a period of sluggish growth which [it] now expects will extend
into the second half of the decade".
The credit ratings agency also noted that the Government's debt reduction
programme faced significant "challenges" and that the UK's huge debts are
unlikely to "reverse before 2016".
Moody's said that despite considerable structural economic strengths, growth
is expected to be sluggish due to a combination of weaker global economic
activity and the drag on the UK economy "from the ongoing domestic public-
and private-sector deleveraging process."
However, Moody's, which is the first ratings agency to lower the UK from the
highest rating, said the outlook on UK debt is stable.
Mr Osborne responded to the downgrade by insisting he would not change
course on the Government's austerity programme.
He called Moody's decision a "stark reminder of the debt problems facing our
country - and the clearest possible warning to anyone who thinks we can run
away from dealing with those problems".
"Far from weakening our resolve to deliver our economic recovery plan, this
decision redoubles it."
"We will go on delivering the plan that has cut the deficit by a quarter,
and given us record low interest rates and record 'the UK's creditworthiness
remains extremely high' thanks in part to a 'strong track record of fiscal
consolidation' numbers of jobs."
He also took comfort that Moody's noted that "the UK's creditworthiness
remains extremely high" thanks in part to a "strong track record of fiscal
consolidation".
Mr Osborne added: "[Moody's] also make it absolutely clear that they could
downgrade the UK's credit rating further in the event of 'reduced political
commitment to fiscal consolidation'.
"We are not going to run away from our problems, we are going to overcome
them."
In his Autumn Statement in December, Mr Osborne admitted public finances
were taking longer to address than he had hoped, adding that he would be
forced to extend austerity measures by at least another year.
All three major credit agencies last year put the UK on "negative outlook",
meaning they could downgrade its rating if performance deteriorates.
abelard
Feb 23, 2013, 7:34:00 AM2/23/13
to
On Sat, 23 Feb 2013 07:31:35 -0500, "BurfordTJustice"
<bur...@hubdub.mo> wrote:
>Britain's credit rating downgraded from AAA to Aa1
>The Government's economic strategy has been dealt a serious blow after a
>leading credit ratings agency downgraded UK debt on its expectation that
>growth will "remain sluggish over the next few years".
they did the same to the usa...the real market took no notice
<bur...@hubdub.mo> wrote:
>Britain's credit rating downgraded from AAA to Aa1
>The Government's economic strategy has been dealt a serious blow after a
>leading credit ratings agency downgraded UK debt on its expectation that
>growth will "remain sluggish over the next few years".
and kept on rising...
only the economically illiterate care....
what matters is the bond rates/market..that is the real world
Farmer Giles
Feb 23, 2013, 7:53:24 AM2/23/13
to
abelard
Feb 23, 2013, 7:56:16 AM2/23/13
to
On Sat, 23 Feb 2013 12:53:24 +0000, Farmer Giles <gi...@nospam.com>
wrote:
your dislike of the real world is famous on 18 continents
wrote:
Farmer Giles
Feb 23, 2013, 8:00:20 AM2/23/13
to
AC
Feb 23, 2013, 8:29:26 AM2/23/13
to
If this happened under Brown you would have wet your knickers over it
and been claiming he was ruining the economy, all on his own. Now it
under the tories you make up excuses because you can't blame some one else.
--
AC
abelard
Feb 23, 2013, 9:07:20 AM2/23/13
to
the ruination was caused by the clown and his cronies...
now we have to deal with it...
the debt and other problems left by fascist 'new' labour doesn't just
go away because the irresponsible socialists have been ejected..
don't expect much attention from...your ignorance makes you
boring
Andy Wainwright
Feb 23, 2013, 9:51:38 AM2/23/13
to
still needs sorting out, i.e. a lot of Asian goods bought on tick.
However both the USA and UK have reasonably robust legal systems, in
many cases superior to Asia. Business will always flow in the long term
to states with better records regarding institutional corruption.
DVH
Feb 23, 2013, 11:07:50 AM2/23/13
to
On 23/02/2013 14:51, Andy Wainwright wrote:
>
> As was the USA last year. There's a balance of payments question that
> still needs sorting out, i.e. a lot of Asian goods bought on tick.
>
> However both the USA and UK have reasonably robust legal systems, in
> many cases superior to Asia. Business will always flow in the long term
> to states with better records regarding institutional corruption.
Wot a sensible post. It considers the long term, and ignores the
>
> As was the USA last year. There's a balance of payments question that
> still needs sorting out, i.e. a lot of Asian goods bought on tick.
>
> However both the USA and UK have reasonably robust legal systems, in
> many cases superior to Asia. Business will always flow in the long term
> to states with better records regarding institutional corruption.
temporary hysteria put out by untalented and ignorant scribblers.
Rule of law is very attractive to business. It allows them to plan ahead
with some certainty that one's assets won't be seized on the whim of
some bought judge.
People are fleeing Argentina for that reason.
abelard
Feb 23, 2013, 11:17:38 AM2/23/13
to
DVH
Feb 23, 2013, 11:26:46 AM2/23/13
to
abelard
Feb 23, 2013, 12:12:45 PM2/23/13
to
government is the problem, not the solution
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