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Moody's Downgrades UK!

Hi Kevin
Having a negative outlook does not mean we have been downgraded it just means that it is more likely that the next move would be a downgrade, a subtle but important difference. Also Moodys is only one of the big 3 Credit ratings agencies all 3 of which gave AAA ratings to those dodgy Mortgage bonds in the US that were one of the main causes of the Financial Crash 2007/2008. Standard & Poors still has the UK as AAA the highest possible (although with a negative outlook too). Fitch has us at AAA and stable so we're still looking pretty good. The standard of reporting in the media on markets and the City has been absolutely appalling over the last couple of days. Yesterday the BBC kept going on about the rout in the stock markets even though in fact the FTSE 100 ended the week higher than at the start. The problem in the currency and stock markets yesterday was that most traders had assumed a Remain vote.. when they woke up to find they had been wrong there was a knee-jerk reaction sending the markets down for a short while until they stabilised and came back up.
Hope that makes it a bit less frightening..
Regards
Mark
 
We were all ready at AA before everything kicked off so the next one is A and we are negative equity but the pound is worthless like normal as it is still down as checked the rates this morning on Bloom berg news but we all ready knew that from yesterday and the FTSE 100 stands at 6138.69 at close of business last night down 3.15 0/0 which I think will stay low for a while it may recover but I don't know about it yet and I went to check the prices for the current currency exchange and they are pretty much not worth the ink the paper it is wrote on
 
Well said @bulkbiker. It would be highly unlikely that the UK would get downgraded that quickly after a decision like this.

Fortunately, the rating agencies seem to have learned a thing or two from 2008 and there's usually a good amount of analysis and research that goes into upgrading/downgrading a company or economy all of which takes a bit of time.

Right now, all you're seeing is the market's reaction to the news that's fueled by fear. It's the same kind of reaction that's occurred after China, Greece, and the general Euro Sovereign debt crisis over the past few years. Yes, those are serious events, but they had a much smaller effect on the global economy in the end.


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bulkbiker said:
Hi Kevin
Having a negative outlook does not mean we have been downgraded it just means that it is more likely that the next move would be a downgrade, a subtle but important difference. Also Moodys is only one of the big 3 Credit ratings agencies all 3 of which gave AAA ratings to those dodgy Mortgage bonds in the US that were one of the main causes of the Financial Crash 2007/2008. Standard & Poors still has the UK as AAA the highest possible (although with a negative outlook too). Fitch has us at AAA and stable so we're still looking pretty good. The standard of reporting in the media on markets and the City has been absolutely appalling over the last couple of days. Yesterday the BBC kept going on about the rout in the stock markets even though in fact the FTSE 100 ended the week higher than at the start. The problem in the currency and stock markets yesterday was that most traders had assumed a Remain vote.. when they woke up to find they had been wrong there was a knee-jerk reaction sending the markets down for a short while until they stabilised and came back up.
Hope that makes it a bit less frightening..
Regards
Mark
Click to expand...

Indeed:)

The overarching issues will revolve around consumer confidence, us being essentially a consumer driven society and until things are settled, which will take some time, spending, housing investment decisions etc will contract in my opinion.


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