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.

S&P threatens to cut UK's AAA rating

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter