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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Ahmeexnal's picture

Diamond Jubileum!

Cromwell lives!!

wee-weed up's picture

Her Mah-jesty doughs NOUGHT approoove!


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

Apeman's picture

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

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.

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.


Hippocratic Oaf's picture

That must have been one motherfucking expensive celebration

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


falak pema's picture

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

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.

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.



Sandmann's picture

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

Ghordius's picture

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


Conman's picture

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

junkyardjack's picture

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

IMA5U's picture



the EU will say all the right things

DOW 100,000

Poetic injustice's picture

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

LongSoupLine's picture

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

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.

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.

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

Jason T's picture

put this world through bankruptcy already. 

LongSoupLine's picture

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

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 perspective

JackT's picture

21 Minutes left!

It is a bargin my friend's picture

Bastards...could have waited till the concert finsihed 

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

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.

theTribster's picture

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

Bubble's picture

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

Bubble's picture

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

Sandmann's picture

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

scatterbrains's picture

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

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.


WiretapWilly's picture

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

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.

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...

superbroker1's picture

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

BankruptBanker's picture


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!

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.

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.