UKC

http://www.bbc.co.uk/news/business-41369239

So the Uk has been down graded...how serious is this?

In reply to balmybaldwin:



You only have to read past paragraph four to realise that Moody's has actually lagged behind the other prominent credit agencies in applying the higher rating for the past year, which suggests that the shift is not very serious at all in terms of short term consequences. It's more a tweak to come into line with the prevailing thinking elsewhere.

Ironically deficit reduction has surprised on the upside recently which goes against Moody's outdated observation. Of course this is the firm whose brief it was to spot the sub-prime debt crisis, so no surprises there.

In reply to balmybaldwin:

To quote Faisal Islam, "Hours after PM speech Moodys downgrade UK debt to AA2 lowest ever credit rating for UK - citing 'Brexit challenges'" https://t.co/QMANxY6Fm2

In reply to balmybaldwin:



Very - it increases the rate of interest the country has to pay on any of its loans. Lower credit rating = higher potential risk for the lender = higher interest demanded to mitigate that risk.

In reply to balmybaldwin:
These agencies are a joke, are they accounable for these decisions? there were questions asked of them all during the peak of the banking crisis which seem to have been swept under the carpet.

In reply to balmybaldwin:

The cause of the downgrading (Brexit uncertainity) is surely more serious than the potential results of the downgrading.

In reply to andrew breckill: who do you think they should be accountable to? The government they've just downgraded?

It's a commercial decision - they're accountable to their customers, the people doing the lending

In reply to John Stainforth:

Surely they’re one and the same?