Schroders in fear for sterling as S&P downgrade looms

Schroders has cast doubt over the UK's economic stability after Standard & Poor's placed a negative ...

Schroders has cast doubt over the UK's economic stability after Standard & Poor's placed a negative outlook on the country's sovereign debt last week. While the ratings agency has yet to move Britain from its AAA rating, the negative view is widely considered to be the first step towards a downgrade and sent initial shudders through the UK's currency, gilt and stock markets. Schroders' pan-European economist Azad Zangana says a drop to an AA rating would do significant damage to sterling. "Though the UK's downgrade follows those of Ireland, Greece, Spain and Portugal, the latter four ...