Moody's says British vote result won't threaten top rating

7th May 2010, Comments 0 comments

Ratings agency Moody's said Friday that the unclear result from Britain's general election "does not directly threaten" the country's top-level rating.

"The outcome of the UK general election does not directly threaten the UK government's Aaa rating," Moody's Investors Service said in a statement, after results showed that no single political party had won an outright majority.

However, the outcome will create a degree of uncertainty, according to Arnaud Mares, senior vice president in the sovereign risk group and lead analyst for Britain's sovereign rating.

"The lack of a one-party majority will undoubtedly create political uncertainty in the short and perhaps also the medium to longer term," Mares said in the report.

"Nevertheless, Moody's view is that it is not the political but the policy outlook that matters most."

© 2010 AFP

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