The Big Question: How concerned should investors be about the UK losing prized AAA rating?

Toby Nangle, head of multi-asset, Threadneedle Investments   Political impact The government put undue and inappropriate emphasis on the defence of the AAA rating, and for this reason has suffered a hit to its political credibility. The government has repeatedly described the UK’s finances as being analogous to those of a private household, with very low gilt yields reflecting market perceptions of its creditworthiness. It has favourably contrasted these low government bond yields with high yields in a number of eurozone countries that are as fiscally troubled as the UK. But t...