• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Egan Jones Downgrades The UK From AA To AA-

Tyler Durden's picture


When one is expected to go down for missing a comma in their NRSRO application, one at least should go down swinging. Sure enough, Egan-Jones, the only rating agency with any credibility left, is at it again, this time cutting the big momma itself - the UK - from AA to AA-.

6/4/2012: United Kingdom: EJR lowered AA to AA- (Neg.) Projected A+ (S&P: AAA) (6152Z LN)


Synopsis: On the balance of payment side, imports have exceeded exports by an average of approximately 500B pounds annually over the past several years. The major problems for the UK is that Europe's banking crisis does not appear to be abating as evidenced by the miserable results of most EU banks. On the fiscal side, the deficit to GDP has declined over the past three years from 11.5% to 8.3%, which is a respectable decline, but the bulk of the reduction was the result of increased taxes since GDP growth was weak. The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector. Unfortunately, we expect that the UK's debt/GDP will continue to rise and the country will remain pressed.

Full report here.

This chart may have something to do Egan-Jones decision:

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Mon, 06/04/2012 - 16:06 | 2493220 Ahmeexnal
Ahmeexnal's picture

Diamond Jubileum!

Cromwell lives!!

Mon, 06/04/2012 - 16:07 | 2493246 TeMpTeK
TeMpTeK's picture

Eff the Queen.

Mon, 06/04/2012 - 16:09 | 2493262 wee-weed up
wee-weed up's picture

Her Mah-jesty doughs NOUGHT approoove!

Mon, 06/04/2012 - 16:10 | 2493269 Agent P
Agent P's picture


Mon, 06/04/2012 - 16:12 | 2493282 SilverTree
SilverTree's picture

"No risk of that"


Mon, 06/04/2012 - 16:19 | 2493319 SHEEPFUKKER

Epic timing during the Queen's Diamond Jubilee.  Much respect E. Jones. 

Mon, 06/04/2012 - 16:45 | 2493466 Apeman
Apeman's picture

They should've downgraded the UK during the previous Jubilee. But oh well... better late than never I guess.

Mon, 06/04/2012 - 17:05 | 2493527 Marginal Call
Marginal Call's picture

Who's figured out the Egan Jones indicator?  Seems they go public and then a week or two later everybody else admits it and goes along with them.

Mon, 06/04/2012 - 19:23 | 2493979 chiswickcat
chiswickcat's picture

Down grade can't be true. It's not on the BBC tv news, not on the BBC web site's front page nor even the business page. All is well here in the land of pomp and pageantry.


Mon, 06/04/2012 - 16:10 | 2493267 Hippocratic Oaf
Hippocratic Oaf's picture

That must have been one motherfucking expensive celebration

Mon, 06/04/2012 - 16:15 | 2493291 SilverTree
SilverTree's picture

God downgrade the Queen!

Mon, 06/04/2012 - 16:31 | 2493382 macholatte
macholatte's picture





It was cold, wet and windy, but the typically damp British summer weather was not enough to deter more than a million people from lining the River Thames to catch a glimpse of Queen Elizabeth float past on a gilded royal barge.

Drenched crowds laugh off deluge for jubilee party





£32.1 million -- Amount the British government provides Elizabeth and Prince Philip annually (about $50 million U.S.)

$500 million -- The queen's approximate net worth.

Decades, diamonds and dollars: The reign of Elizabeth II by the numbers




The Crown Estate posted rental income of 235 million pounds ($361 million) for the year through March, compared with revenue of 2.5 million pounds in 1952, the newspaper reported.

Queen Elizabeth’s Property Income Rises 9,400%, FT Reports



Mon, 06/04/2012 - 16:48 | 2493474 falak pema
falak pema's picture

the queen is already indexed on QE-3!! Imagine going from 2 million to 235 ...

Mon, 06/04/2012 - 16:54 | 2493501 Mitzibitzi
Mitzibitzi's picture

You ain't even close! The UK civil service reckon the Queen's worth, if you liquidated ALL the Royal family's assets to cash, at 1.7 TRILLION pounds. That's WELL over 2 trillion dollars.

Mon, 06/04/2012 - 17:42 | 2493658 Shock and Aweful
Shock and Aweful's picture

I think  you may be overstating a bit....(not that I think she deserves any of it)..... 

I was reading something about the so-called "Royal" Family's wealth....and I guess that all of the "royal property"...such as Buckingham Palace,  the crown jewels, and any other properies that belong to the "commons" are not calculated or added into her net worth....because she does not have the ability or right to sell them.  (the swans on the Thames are also supposedly property of the commons...haha - not shitting you) 

This make the Queen ONLY the 267th wealthiest person in the UK  -  She's basically a high-class pauper living on the DOLE.



Tue, 06/05/2012 - 07:26 | 2495171 Sandmann
Sandmann's picture

How much are the Federal Assets in the USA worth ? Quick, the Chinese are asking !

Mon, 06/04/2012 - 16:11 | 2493265 Ghordius
Ghordius's picture

now this is not sporting at all. The City closed in celebration and this, this.... knife in the back


Mon, 06/04/2012 - 16:31 | 2493337 macholatte
macholatte's picture


Mon, 06/04/2012 - 16:05 | 2493231 Conman
Conman's picture

Quick fire up the paper shredders at EJ London office the bobbies are coming.

Mon, 06/04/2012 - 16:06 | 2493233 junkyardjack
junkyardjack's picture

I was wondering why the market rallied a half an hour before the close, this must have been leaked. Bullish!....

Mon, 06/04/2012 - 16:06 | 2493237 IMA5U
IMA5U's picture



the EU will say all the right things

DOW 100,000

Mon, 06/04/2012 - 16:07 | 2493240 Poetic injustice
Poetic injustice's picture

I think they have not downgraded only Antarctica, the only safe place to hide for all Egan Jones workers.

Mon, 06/04/2012 - 16:10 | 2493270 LongSoupLine
LongSoupLine's picture

Neah...hide them all at the SEC.  The SEC would never find them there.

Mon, 06/04/2012 - 16:14 | 2493288 Nothing To See Here
Nothing To See Here's picture

Antartica is already full of government-funded "climate scientists" checking the differences between penguin excrements from today and from the last century in order to prove global warming.

There is no place to hide. None. And mainstream-presidential-candidate-turned-Mitt-Romney-supporter Newt Gingrich already has plans for a moon base.

Mon, 06/04/2012 - 16:45 | 2493454 falak pema
falak pema's picture

don't need to examine penguin excrement, just look at their glaciers...There will be a recrudescence of icebergs as a consequence. Hundreds of them. Watch out for QE-3 running into an iceberg.

Mon, 06/04/2012 - 16:07 | 2493245 Comay Mierda
Comay Mierda's picture

FSA will prob sue them like the SEC

maybe Egan Jones should send all the regulators midget porn tapes to keep them busy

Mon, 06/04/2012 - 16:08 | 2493253 Jason T
Jason T's picture

put this world through bankruptcy already. 

Mon, 06/04/2012 - 16:09 | 2493257 LongSoupLine
LongSoupLine's picture

I've got a man-crush on Egan Jones and Nigel Farage

Mon, 06/04/2012 - 16:14 | 2493281 Ghordius
Ghordius's picture

the second is a comic actor and the first one I have never heard about?


Farage's comic commentary in the correct perspectivehttp://www.youtube.com/watch?v=F3e6IWsJA9U

Mon, 06/04/2012 - 16:09 | 2493260 JackT
JackT's picture

21 Minutes left!

Mon, 06/04/2012 - 16:10 | 2493266 It is a bargin ...
It is a bargin my friend's picture

Bastards...could have waited till the concert finsihed 

Mon, 06/04/2012 - 16:44 | 2493459 NotApplicable
NotApplicable's picture

God Save the Queen?

Mon, 06/04/2012 - 16:47 | 2493470 It is a bargin ...
Mon, 06/04/2012 - 17:28 | 2493603 It is a bargin ...
It is a bargin my friend's picture

Acutally after posting that and watching this weekend in the uK, I need to vent, as a 50 year old and living the pistols years at 16 and it blowing me away to fuck , and 2 wifes and 2 kids later, I'm real really fucked that we have gone backwards from those halcyon dasy of UK hope when we out did the fucking world in sceptisicim and said fuck you to the govt and the fucking police and schools and led the way and that cunting bitch Maggie came along nand said that we where diseased and had to change it....and here we are, with Ronnie they changed it and im as sad as a Brit could be this weekend...fucking lost hope in my life time led to this shit...cunts all of them

Mon, 06/04/2012 - 16:11 | 2493279 Nothing To See Here
Nothing To See Here's picture

Even Egan-Jones knows that the UK is junk. EJ is only pretending less than the other agencies that it is not.

Mon, 06/04/2012 - 16:12 | 2493283 theTribster
theTribster's picture

What is the effect on borrowing? Is it an automatic additional 100 basis points? Anybody know? Tyler?

Mon, 06/04/2012 - 16:18 | 2493290 Bubble
Bubble's picture

Zero, the BoE will be buying all of this year's remaining issuance.

Mon, 06/04/2012 - 16:14 | 2493284 Bubble
Bubble's picture

The UK is covered in little plastic flags. The jubilee has been a godsend...for Chinese manufacturing.

Tue, 06/05/2012 - 07:23 | 2495165 Sandmann
Sandmann's picture

The British get a Diamond Jubilee and the Americans get an Election that wil cost $2 billion

Mon, 06/04/2012 - 16:16 | 2493295 scatterbrains
scatterbrains's picture

That's it!  Fuk the SEC!  It's time to step it up and put Eric place Holder on these guys!

Mon, 06/04/2012 - 16:16 | 2493297 squib
squib's picture

Eduard Khil has passed today. RIP. There is no video I have watched more in the past year.


If you guys give me the go ahead, I will change my name to 'Ghost of Khil' to honor the legend.

Resurrection this Sunday.


Mon, 06/04/2012 - 16:16 | 2493301 WiretapWilly
WiretapWilly's picture

Why do I see a bonus styrofoam medal presentation at the closing ceremonies?

Mon, 06/04/2012 - 16:17 | 2493309 WoodMizer
WoodMizer's picture

"Egan-Jones, the only rating agency with any credibility left"

That phrase contains more truth, than an entire 24hr period on CNBC and BloombergTV.

If the sheeple had a memory longer than 3 months Egan would be the only ratings agency to survive the 2007/08 debacle.

Mon, 06/04/2012 - 16:19 | 2493326 JackInTheBox
JackInTheBox's picture

Great. After this downgrade, the SEC will probably accuse Egan Jones of distributing porn to children.  Or fraud.  Or treason.  Meanwhile, the MF Global trail has "gone cold" even despite all the public disclosures of obvious fraud.  But then again, I guess any trail would go cold when other people's money just "vaporized."  Gotta love the SEC's apparent motto:  "Preserve, protect, and defend the banksters and politicians at all costs."  Meanwhile, if you tell the truth, the SEC will drop the hammer on you.  Good luck, Egan Jones.  You are going to need it now.  I see another SEC investigation in 3...2...1...

Mon, 06/04/2012 - 16:21 | 2493336 superbroker1
superbroker1's picture

God save the Queen
She ain't no human being
There is no future
In England's dreaming
-Sex Pistols

Mon, 06/04/2012 - 16:23 | 2493344 BankruptBanker
BankruptBanker's picture


Mon, 06/04/2012 - 16:36 | 2493411 Satan
Satan's picture

Nobody invited Egan Jones to this party. Who the fuck let them through the door? I want heads to roll god dammit.Get me the SEC. Crush these mother fuckers!

Mon, 06/04/2012 - 16:37 | 2493414 Bolweevil
Bolweevil's picture


Mon, 06/04/2012 - 16:52 | 2493415 falak pema
falak pema's picture

Egan Jones... with a name like that it must be a stool pigeon for the russian oligarchs, like CHelsea FC. If Chelsea is ruski, there is no hope for Egan...of the Joneses.

After the Olympics the banks of Uk will start to run like Usain Bolt.

Mon, 06/04/2012 - 16:44 | 2493457 Snakeeyes
Snakeeyes's picture

Not surprising with all their debt and vurtually no GDP growth. Prediction: like France, UK will elect a Socialist and go further down the drain.


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