The Bankwatch

Tracking the consumer evolution of financial services

Europe: UK and others on downgrade watch

The situation in Europe just received another jolt with Moodys placing UK and France on downgrade alert.  This is a first for the UK but no surprise. 

It is some sign though that medium term interest rates are not sustainable at current levels.  The situation has a long way to play out.



Moody’s shifts outlook for UK and France

Moody’s put the UK, France and Austria on negative outlook late on Monday night, raising the prospect that the three countries would lose their triple A ratings due to exposure to the eurozone debt crisis.

Moody’s places UK credit rating on ‘negative outlook’

Moody’s, one of the agencies that assess the strength of the country’s public finances, said it was changing the UK’s outlook to ‘negative’ from ‘stable’.

That means there is a heightened risk that Moody’s could cut Britain’s credit rating from ‘AAA’, the highest level possible, if the public finances and economy deteriorate further in the coming months.

Written by Colin Henderson

February 13, 2012 at 23:36

Posted in Uncategorized

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