– Despite significant progress in reducing public sector net borrowing (PSNB from a peak of 11.2% of GDP (GBP159bn) in 2009-10, the budget deficit remains 7.4% of GDP (excluding the effect of the transfer of Royal Mail pensions) and is not expected to fall below 6% of GDP and GBP100bn until the end of the current parliament term. The slower pace of deficit reduction means that the next government will be required to implement substantial spending reductions (and/or tax increases) if public debt is to be stabilised and reduced over the medium term. The Stable Outlook on the UK’s sovereign ratings reflects the following factors. – Under Fitch’s baseline economic and fiscal scenario, which assumes a continued policy commitment to reducing the underlying budget deficit and medium-term annual growth potential of 2%-2.25%, government debt gradually falls as a share of national income in the latter half of the decade. – The long average maturity of public debt (15 years) – the longest of any high-grade sovereign -exclusively denominated in local currency and low interest service burden implies a higher level of debt tolerance than many high-grade peers. – The international reserve currency status of sterling and the ability and willingness of the Bank of England to intervene in the UK government debt market largely eliminates the risk of a self-fulfilling fiscal financing crisis. – The gradual improvement in the UK banking sector’s capital and liquidity position has further reduced contingent liabilities arising from this sector. The UK’s ‘AA+’ rating is underpinned by its high-income, diversified and flexible economy as well as a high degree of political and social stability. The monetary policy framework as well as sterling’s international reserve currency status afford the UK a high degree of financial and economic policy flexibility. Strong civil and policy institutions and a high degree of transparency enhance the predictability of the business and economic policy environment that compares favourably with peers in the ‘AA’ category. Weak economic performance and growth prospects, relatively high levels of private and foreign as well as public debt, along with sizeable twin fiscal and current account deficits, are weaknesses relative to rating peers. RATING SENSITIVITIES The Stable Outlook indicates a less than 50% chance of a change in the UK sovereign ratings over the next two years. The main factors that could lead to a negative rating action, individually or collectively, are: – Failure to stabilise the government debt to GDP ratio over the medium term. – Increased threat to macro-financial stability, for example arising from an intensification of the eurozone crisis or an erosion of confidence in the UK’s policy commitment to price stability. The main factors that could lead to a positive rating action, individually or collectively, are: – Stronger economic recovery and rebalancing of the UK economy than currently forecast.
Fitch Downgrades United Kingdom to ‘AA+’; Outlook Stable
Mr. Dennison holds more than 25 years of strategic leadership experience with a proven track record of organizational expansion. He is graduate with a J.D. from The University of Texas School of Law with honors and received his B.A. with highest honors from the University of Texas at Austin. Beryl Goldman, president of PCMS said, We welcome Jack s leadership and expertise to the PCMS team. This exciting partnership with Jack reinforces PCMS commitment to delivering the industry s most comprehensive, modern, web-enabled P&C solutions. We look forward to leveraging Jack s operational expertise and analytical skills to help take PCMS to the next level. Dennison said, I believe PCMS has the best technology in the P&C software market, and I m confident that gives us a competitive advantage as we expand the company. I m excited to be supported by an incredibly talented team with a passion to innovate. PCMS is a provider of modern, comprehensive cloud-based IT solutions for P&C insurers. (c) 2013 Euclid Infotech Pvt.
Mercedes Benz Axes its R Class in the United Kingdom
However, the modern car market has no need for this vehicle. Hence, Mercedes Benz decided to get rid of it. The R Class featured a base price of 44,620 while its base engine displaced 190 BHP along with 2655 ft lb of torque. Although this as sufficient at that time, it has no importance in the current market strata. Mercedes Benz planned on upgrading this vehicle back in 2007 although response was still lukewarm in the market. Rear wheel drive was hence available along with an optional seven seated version. This was aimed at attracting customers although this plan did not seem very effective in the end. Another facelift quickly followed in 2010 although this was not too helpful either. Mercedes Benz tried everything from reworking the interior to an almost new exterior as well as drive train modifications, although none of these seemed to work for the audiences. This is one of the last global markets where the R Series was still being sold, although insiders say that the R Class will still be available in China. The Asian market, especially China, is one of the leading 4 x 4 markets and hence the R Class is quite popular in these parts of the world. Right hand drive versions of the car will now be manufactured exclusively for China while left hand drive versions of the car were phased out long back. Mercedes Benz is however working on a replacement for this car while its first glimpses have already been showcased in some parts around the globe. Mercedes Benz axed its R Class from Australia initially while showcasing the Vision Grand Sport Tourer at the same time.