Scotland won't keep UK's AAA rating if it gains independence, says Fitch
Although the precise division of UK assets and liabilities has not yet been established by the Scottish Nationalists, Fitch told the Treasury Select Committee that the lack of a repayment track record could scupper Edinburgh's chances of inheriting the UK's rating.
Under sustained questioning from Michael Fallon, MP for Sevenoaks, the director of Fitch, David Riley, said: "I am not aware of any situation where we have awarded AAA rating to a newly independent sovereign nation."
The directors from Fitch, Standard & Poor's and Moody's were being grilled over their decisions to downgrade sovereign ratings, some of which have triggered turmoil in the stockmarkets. In a sometimes heated meeting, during which Bury MP David Ruffley stormed out, the agencies denied the downgrades were "marketing" decisions made to grab headlines.
Moritz Kramer, head of sovereigns at S&P, insisted his company's decision to strip America of its AAA rating last summer was not a "mistake", even though the yield on US Treasury bonds has fallen by a fifth since then.
Asked if it were really his "belief that the US's desire and capacity to repay its debts was lower than [the AAA-rated] Finland," Mr Kramer said: "I do." He said compared with Finland, America's debt ratio was higher, its debt trajectory worse, and its political policies for debt reduction less coherent.
more
Scotland won't keep UK's AAA rating if it gains independence, says Fitch - Telegraph