Does Fitch putting Britain’s sovereign debt on the naughty step matter?
For accuracy’s sake, IOUs issued by the government have been placed on “negative outlook” by the ratings agency. This is sometimes, but not always, the precursor to a downgrade.
It is nearly a decade since Fitch withdrew the once prized AAA rating from the UK’s debt. Moody’s, a rival agency with a slightly different system, moved similarly. S&P, perhaps the top dog among the three, was a little later to the party.
