Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Moody's warns of Scottish downgrade

1 Comment
Moody's warns of Scottish downgrade

Moody's has warned that an independent Scotland would have a lower credit rating than the UK after suggering a double downgrade.

Moody’s said a vote in favour of independence Scotland would likely mean the country would be given an investment-grade A rating - below the UK's current Aa1. The ratings agency also warned that banks and insurers that have their headquarters in Scotland, such as Lloyds Banking Group, Royal Bank of Scotland and Standard Life, were likely to move out of an independent Scotland.

Moody's added that Scotland could improve its rating over time, while an independence vote could improve the credit rating for the rest of the UK.

It said: ‘While there are significant uncertainties associated with Scottish arrangements post-independence, an 'A' rating is perhaps the most likely at the outset, but with risks tilted to the downside.

‘Over time, greater clarity over (and confidence in) Scotland's institutional structure and measures to address longer-term fiscal issues could make higher rating levels attainable.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter