U.K. Credit Rating Cut to AA by S&P With Negative Outlook

The United Kingdom has been downgraded from AAA to AA by Standard and Poor's, with a negative outlook. Despite this, the bond market shows a different reaction, with UK gilt yields dropping below 1% for the first time. This indicates a strong demand for safe-haven assets, not only in the UK but also in Japan and Germany. The downgrade is seen as a loss of prestige for the UK, but the market's response suggests continued confidence in UK government debt.

What was the new credit rating given to the United Kingdom by Standard and Poor's?

• BBB

• AA

• AAA

• A

How did the bond market react to the UK's credit rating downgrade?

• Gilt yields remained stable

• Gilt yields increased significantly

• Gilt yields were unaffected

• Gilt yields dropped below 1%

What was the reaction of the British pound to the credit rating news?

• It surged to new highs

• It remained stable

• It experienced the biggest two-day loss ever

• It gained 3% in value

Which other countries were mentioned as having record low yields similar to the UK?

• China and India

• Canada and Australia

• Japan and Germany

• France and Italy

What is the significance of losing a AAA credit rating for a country?

• It leads to immediate economic collapse

• It indicates a strong economic position

• It has no impact on the country's economy

• It is considered a loss of prestige