Wednesday, 15 February 2012

Scotland's Credit Rating

Britain is one of the countries with a AAA credit rating. Considering that the USA and France lost theirs, that's a feather in our cap. Having a AAA credit rating is valuable; it means our government can borrow at low rates of interest, currently less than 2%. Italy and Spain have been paying about 7%. That means their governments pay billions more in interest, money that could be used for public services.
In explaining Britain's strengths, the ratings agencies said" Britain is a large diversified economy, it has a large domestic investor base, there is a willingness and ability of the central bank to undertake monetary policy".
These are three attributes an Independent Scotland would not have. We would not get a AAA rating.

No comments:

Post a Comment