Government 'confident' on ratings

Feb 6 2012

The Scottish Government is "entirely confident" the country will get the highest possible credit rating if it left the UK, despite claims its ranking could be less.

Labour and the Tories both seized on speculation an independent Scotland would not automatically inherit the UK's triple-A credit rating. Labour leader Johann Lamont said the "economic case for separation is unravelling by the day". Tory finance spokesman Gavin Brown said the situation is "deeply concerning".

They both challenged the SNP administration after the Financial Times newspaper reported the three leading credit agencies Standard & Poor's, Moody's and Fitch had indicated that an independent Scotland would not automatically inherit the UK's top-notch rating.

The paper said one agency, which it did not identify, had told it privately that Scotland could expect to receive an investment grade rating some notches below triple-A. However, it added that the agencies had declined to comment publicly because they do not give unsolicited ratings and the Scottish Government had not yet sought a draft opinion.

A spokesman for the Scottish Government said: "When you examine the story it is clear that the credit ratings agencies in fact declined to issue any comment about an independent Scotland."

He added that the Financial Times report also "makes it clear that it is based on the guess of one bond analyst".

The Government spokesman pointed out: "The UK's deteriorating growth outlook has led the credit ratings agencies to question the UK's triple-A status, which is one reason why Scotland needs full access to the economic and financial levers of government so that we can boost growth, recovery and jobs.

"We are entirely confident of Scotland having the top credit rating, in common with other small nations such as Finland, Denmark, Norway and Luxembourg, and that position is supported by Scotland having stronger public finances than the UK as a whole and lower public sector debt."

However, Ms Lamont said: "I find it extraordinary that the SNP have not even approached the credit agencies for a draft opinion. Basically, they are asking the people of Scotland to take a gamble on the economic future of the country."

Meanwhile Mr Brown said: "Ratings agencies are taken extremely seriously by investors all over the world and this warning is therefore deeply concerning: three of the top agencies agree that a separate Scotland would not be guaranteed a triple-A rating."