Island's Aaa Rating Retained

[joeyconcrete]

Standard and Poors, the external ratings agency, have today confirmed the Isle of Man has retained its 'AAA' rating, the highest it awards

 

http://www.manxradio.com/readNEwsItem.aspx?id=7688

 

But what seems to be missed from the local press releases..

 

However, S&P views irregularities related to the borrowing of the Manx Electricity Authority to continue having a negative impact on the public finances.

 

http://money.cnn.com/news/newsfeeds/articl...13-18034495.htm

 

What bearing does the S&P rating actually have on the Island?

[ian rush]

One of the reasons whu the case needs to be settled (aside from saving loads on legal fees) is because Tynwald sanction of the borrowing resolves the issues rasied by the case and preserves the AAA rating.

 

The rating is vital to the long term stability and growth of the finance sector - its a bit like an Equifax rating (for individuals seeking credit) but for companies operating out of the Island and government itself.

 

NB There won't automatically be a cover-up (per Peter Karran, Lib Van) simply by reason of the Tynwald sanction to the unauthorised borrowing. The Tynwald sanction simply gets rid of the Court proceedings under the Auditors Act for the really big chunks of unauthorised expediture (i.e the overrun on infrastructure c.f paying wives travel expenses and duplicate salaries both of which in theory remain live before the Court) . I say there will not be a cover up becasue there is a [public evidence] Tynwald Select Committee which will air precisely the issues which would have gone through the Courts.

[copycat]

hopefully this will take you to the 2006 report as the 2007 one doesn't yet seem to be up loaded yet

 

http://www2.standardandpoors.com/spf/pdf/f...eu&vlang=en