British government debt is already trading at prices that suggest it has lost its prized top credit rating, heightening concerns that investors already view gilts as less than tripleââ¬â°A-rated assets and demand greater rewards for holding them. Since the end of November, the gap between the interest rate Britain and Germany must pay on 10-year government debt has risen from 0.35 percentage points to 0.9 points. British government bond yields ââ¬â the cost of servicing government borrowing ââ¬â have risen above those of Italy for the first time since mid-2008. Britain has to pay much more to borrow than other tripleââ¬â°A-rated economies such as Germany, France and the US.
Which country deserves a "top credit rating"? All of the central banks have been printing money at 15-25% rate for several years, and few have any reserves at all.