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
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter