Treasuries 'disappointed' after Islands' credit ratings downgraded

The credit ratings of both Jersey and Guernsey have been downgraded from AA+ to AA, which could affect their ability to borrow money.

It came after a recalibration exercise by Standard & Poor.

The agency have cited G10’s focus on low tax regimes as a reason for the change.

This is despite both islands insisting they meet international standards of tax transparency and financial regulation.

The islands' outlook has also been labelled as 'negative' to reflect the uncertainty of the economy if the UK exits the EU.

Both islands say they are 'disappointed' with the change as no material change has taken place.

Senator Alan Maclean, Treasury Minister for Jersey, says it's important people know the rating does not show a decline in the economy.

The Treasury Minister in Guernsey also reiterated that the change will have no direct impact on Guernsey's economy or economic performance.

Deputy Gavin St Pier also added that the credit agency has underestimated the fact that Guernsey is not part of the EU and already has an 'established third county relationship on financial services'.

The credit rating of AA still remains one of the highest possible ratings.