In the last few minutes, chatter has begun on a UK downgrade from Fitch:
@Zerohedge Telegraph says Fitch will downgrade the UK’s AAA rating
@BergenCapital chatter of a fitch downgrade to UK @russian_market Gold jumps on UK‘s AAA news
The price of Gold has increased since the rumour entered the market; there is no confirmation if this well be today, but Telegraph are reporting the downgrade is certain.
This was inevitable, due to the Coalition adding £300bn extra to the national debt. UK govt debt will hit 93% of GDP (anything above 90% is seen as incompatible with a AAA rating)
All eyes now on Moody’s and S&P….
This tweet is from the Daily Telegraph:
Despite what Twitter appears to be saying, The Daily Telegraph has NOT reported that Fitch is about to downgrade the UK’s credit rating.