Why we’ll lose our triple-A rating

It's only a matter of time before Britain loses its top-notch credit rating. But does it matter, and how will it affect Britain's recovery?

"Judge us on whether we are able to protect our credit rating," said George Osborne in 2009. If Britain lost that, he warned, it faced a sell-off of British debt in international markets. That would imply higher long-term interest and mortgage rates as bond yields rose (and their prices fell) and a damaged economy.

Today, we're still among a small group of economies with a triple-A, or top-notch, credit rating. But with credit-rating agency Fitch set to review it next year, our triple A is "toast", says Jeremy Warner in The Daily Telegraph. "The real miracle is that we've managed to hang on to it at all."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.