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Originally Posted by heero_yuy
Indeed. At the moment short termism and speculators are driving the markets and sterling. Once the dust settles and saner minds prevail then we can judge.
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We kept AAA from Standard and Poors in 2008. Our national debt went from 37% of our economy to 72% in 3 years and we kept AAA.
Worth reading their explanation for why this happened.
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Originally Posted by Standard and Poors
OVERVIEW
In the nationwide referendum on the U.K.’s membership of the European
Union (EU), the majority of the electorate voted to leave the EU. In our
opinion, this outcome is a seminal event, and will lead to a less
predictable, stable, and effective policy framework in the U.K. We have
reassessed our view of the U.K.'s institutional assessment and now no
longer consider it a strength in our assessment of the rating.
The downgrade also reflects the risks of a marked deterioration of
external financing conditions in light of the U.K.’s extremely elevated
level of gross external financing requirements.
The vote for “remain” in Scotland and Northern Ireland also creates wider
constitutional issues for the country as a whole.
Consequently, we are lowering our long-term sovereign credit ratings on
the U.K. by two notches to 'AA' from 'AAA'.
The negative outlook reflects the risk to economic prospects, fiscal and
external performance, and the role of sterling as a reserve currency, as
well as risks to the constitutional and economic integrity of the U.K. if
there is another referendum on Scottish independence.
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As far as this being short-term you are right - we're on notice that if we don't get our excrement together it's going lower.
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Originally Posted by Standard and Poors
On June 27, 2016, S&P Global Ratings lowered its unsolicited long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA'. The outlook on the long-term rating is negative.
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Losing AAA means it's no longer considered a prime asset so some funds cannot invest in it.
This is balanced by that the market is currently in a blind panic so is buying UK gilts to seek safety.
Moodys are also threatening us with downgrade.
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Moody's expects a negative impact on the economy unless the UK government manages to negotiate a trade deal that largely replicates its current access to the Single Market.
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So that'd be the EEA. There is no other deal that provides such access.