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Sterling shaky on loss of AAA rating: Implications?

What are the implications of Moody’s decision to downgrade the UK's AAA rating on the front line of accountants and advisers?

Will the Moody’s decision influence the Chancellor’s approach in the upcoming Budget?

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25th Feb 2013 13:44

lets hope we don't

put too much faith in a business that AAA rated the subprime loans...their ability to 'rate' is questionable at best, at worst they should be treated with the same scorn as those bankers who were in charge during and before the financial crisis.....

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25th Feb 2013 14:00

None

Sterling has been losing value against the dollar and the Euro for months (and will continue to do so). Moody's left it too late as the markets factored in the downgrade before Christmas.

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By taxguru
25th Feb 2013 14:13

Traders were going short on Sterling for the last few weeks. So Moody's is telling us nothing we didn't already know. I would see some measures to boost the economic activity soon - investment in infrastructure, some more discourse on providing more funds to SMEs etc

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Bloody fiddly...

... little batteries anyway.

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For the vast majority of people

No impact whatsoever.

 

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.

Sterling falling is a good thing for the economy as a whole. 

It really helps the UK be competitive vs Europe and makes imports more expensive. Yes short term inflation, longer term its a big boost to UK industry. 

Its only the fact that the word "fall" sounds bad that people get upset about it.

 

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25th Feb 2013 15:30

Canada & Germany

Only two countries, Canada and Germany, now have AAA rating. Therefore we are still on par with 99% of other nations.

It really is more a matter of prestige. However, it will make it slightly more expensive for the Government to borrow money. On the upside, sterling should weaken against the dollar and the euro, which will help exporters.

I do not see this as being very important, but of course the opposition will attempt to whip up a political storm, no doubt making various wild claims which are far more likely to damage business than any downgrading of the credit rating.

.

 

 

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By casammy
26th Feb 2013 12:01

Sterling shaky on loss of AAA rating: Implications?

 

Good News, there is scope to improve!!

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