Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter