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scotland would be a “safe bet” for investors, the country’s finance secretary insisted, ahead of announcing details of a new bond scheme. first minister,
Shona Robison welcomed the decision by the two global credit rating agencies to give Scotland the same credit rating as the UK.
Moody’s rated scottish government as AA3 while S&P Global rated it as AA, both of which are similar to the UK sovereign rating.
This has already been confirmed john swinney On Thursday more details were revealed about the government’s planned bond scheme – nicknamed “kilts” – in a play on the UK equivalent of gilts.
Ministers in Edinburgh say being able to issue bonds would allow more infrastructure investment to be funded – with Ms Robison saying Scotland has a higher rating than countries including Spain, Italy and Japan.
Speaking on BBC Radio Scotland’s Good Morning Scotland programme, the Scottish Finance Secretary said the higher credit rating would “encourage investment in Scotland”.
He insisted: “This will give investors confidence that Scotland is a safe bet.”
The Finance Secretary added: “The purpose and benefit of these credit ratings is absolutely fundamental to increasing investor engagement in Scotland.
“This will be important for increased visibility in global capital markets and a stronger platform for economic opportunities.
“We think it will be good for Scotland, good for the Scottish economy, and that’s why we’re going ahead with it.”
The move comes after the then First Minister Hamza Yusuf Preparatory work has begun with the aim of issuing the bonds before the end of the current Scottish Parliament session in 2023.
Asked when the bonds would be issued, what type of money the Scottish Government would seek to raise and what it would pay for, Ms Robison said those details would be set out by the First Minister later on Thursday.
However, the Moody’s report includes Scottish independence as a potential factor that could lead to a downgrade of Scotland’s credit rating.
The report said: “Although this is not our baseline scenario, increased uncertainty about the institutional framework for Scottish independence could exert downward pressure on the ratings, potentially increasing financial stability risks.”
However, Ms Robison stressed the “firm foundation” of Scotland’s economy in “whatever constitutional arrangements we have in the future”.
He stressed: “This shows that Scotland’s economy is built on strong foundations.
“Any transition towards Scotland becoming an independent country will be carefully managed to maintain investor confidence, protect Scotland’s public finances and support long-term economic prosperity.”