View more on these topics

S&P affirms UK’s AAA rating

Ratings agency Standard & Poor’s has reaffirmed its AAA rating for the UK, claiming the economy is “wealthy, open and diversified”.

S&P said although it has concerns about growth prospects and public sector debt levels, it remained confident the UK Government would implement the majority of its austerity measures.

S&P’s decision follows the announcements of Fitch and Moody’s to place the UK of “negative outlook”, warning it may be downgraded in the future.

S&P said in a statement: “”In our view, the UK has a wealthy, open, and diversified economy, supported by a well-established political system and macroeconomic policy framework, which can react quickly to economic challenges.

“We expect economic policy to focus on closing the fiscal gap, and we forecast the government’s net debt burden to peak in 2013 at about 87 per cent of GDP.”

Recommended

1

M&G’s Leaviss: Should the government cancel £300bn in gilts?

The Government should consider cancelling more than £300 billion in gilts that the Bank of England has accumulated through its quantitative easing programme, M&G’s Jim Leaviss argues. Leaviss, manager of the £947.5m M&G gilt & fixed interest income fund, writes on the Bond Vigilantes blog that this move could significantly improve the UK’s financial health […]

ING Direct to cut interest-only max LTV to 50%

ING Direct is to cut its maximum loan-to-value on interest-only lending from 75 per cent to 50 per cent. Borrowers can top up their borrowing to 80 per cent LTV as long as the remaining 30 per cent is on a capital repayment basis. If the sale of the property is the repayment vehicle, ING […]

FE Adviser Fund Index

The debate over the appropriateness of structured products continues but, with the RDR looming, will it force a conclusion? One of the central points of discussion, and confusion, among the adviser community has been what the technical requirements of “whole of market knowledge” will require. The FSA’s own definition does appear to leave some room […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment