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.

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
Play From Private Bank to Private Office: the next generation of ultra high net worth investors

From Private Bank to Private Office: the next generation of ultra high net worth investors

Citywire's Anna Dumas highlights the trend towards private and family offices.

Play Inside ETFs: how to defend against bond volatility

Inside ETFs: how to defend against bond volatility

In this latest episode we call in experts from 7IM and Markit to assess how the bond sell-off has impacted ETFs.

Play The future of wealth management according to disruptive tech expert Andrew Tarver

The future of wealth management according to disruptive tech expert Andrew Tarver

Three private office investors direct their questions about the future of wealth management, to Andrew Tarver, founder of Boldrocket and disruptive tech expert.

Wealth Manager on Twitter