Moody's backs UK bond rating after Scotland vote

Staff Writer
Columbus CEO

NEW YORK (AP) — Moody's Investors Services maintained its rating on United Kingdom government-backed bonds Friday, a day after voters in Scotland decided against national independence.

Moody's affirmed an 'Aa1' rating, its second-highest rating, and a stable outlook on U.K. government bonds. The firm added that it has a stable outlook on the bonds, which means it doesn't believe downgrades are likely in the next year to 18 months, and it said the U.K. has "very high" economic strength.

"While the political process going forward will likely lead to further devolution of powers to Scotland and some changes in the fiscal transfers, the rating agency does not anticipate that these will have a material impact on the quality of the U.K.'s institutions, or its financial strength," said Moody's analyst Sarah Carlson.

The firm said in May that if Scotland chose to become independent, the U.K.'s credit profile would not have changed very much and it probably would not have lowered its rating.

On Thursday 55 percent of Scottish voters voted against breaking away from England, Northern Ireland and Wales to become an independent country.