Henderson's Ward: The UK should still be AAA

The UK should still be a AAA credit by current definitions as the risk of a default is virtually non-existent, Henderson's Simon Ward has said.

Moody's became the first of the big three ratings agencies to strip the UK of its AAA rating last Friday, downgrading the country to Aa1 on concerns over growth and the government balance sheet's deteriorating "shock-absorption capacity". But Ward (pictured), chief economist at Henderson, pointed out that credit ratings reflect the risk an investor will suffer a nominal loss of interest or principal. For the UK, that risk remains "infinitesimal". "This risk is infinitesimal for a security issued in domestic currency by a sovereign nation with its own central bank. Such securities shou...