In a world where the value and risks of sovereign debt is being constantly threatened, one of the world’s oldest nations will keep its Aaa rating.
Moody’s announced that “Despite a weak post-crisis balance sheet and challenging economic outlook, the UK is able to meet these challenges whilst maintaining its Aaa credit rating.”
“The UK’s Aaa rating is premised on Moody’s central scenario that the UK economy will maintain a moderate pace of growth over the medium term, that the primary budget balance will be in surplus by around 2014, and that the restructuring of the country’s banking sector will only incur small additional costs.”
“However, the explosion in the government’s deficit and debt metrics over the past three years has eroded the cushion that previously existed,” said Kenneth Orchard, Moody’s lead analyst for the UK.
Put another way, the UK rating is better than those of Spain, Portugal, or Greece, but the Aaa rank may not last for long.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
