Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a645608

S&P threatens to cut UK's AAA rating

Standard & Poor's has threatened to cut the UK's AAA rating just a week after George Osborne's Autumn statement.

 
S&P threatens to cut UK's AAA rating

Standard & Poor's has threatened to cut the UK's AAA rating just a week after George Osborne's Autumn statement.

The ratings agency has followed Fitch and Moody's by placing the UK on a negative outlook and warned the nation would lose its top rating if 'fiscal performance weakens beyond our current expectations'.

The news will be a blow to chancellor Osborne, who outlined fresh measures to reduce the UK's debt position in his statement. The defecit is expected to come in at 7% this year, significantly below the 11% of 2011.

In a statement accompanying its move S&P said. 'The outlook revision reflects our view that we could lower the ratings on the UK within the next two years if fiscal performance weakens beyond our current expectations. We believe this could occur in particular as a result of a delayed and uneven economic recovery, or a weakening of political commitment to consolidation.

It added: 'We expect economic growth to rise slowly in the medium term, with net general government debt as a percentage of GDP [annual economic output] continuing to rise in 2015, instead of stabilising in 2014 as previously expected.'

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Investment Trusts: buy, sell, hold

by Gavin Lumsden on Oct 30, 2014 at 10:51

Sorry, this link is not
quite ready yet