Scotland has received its first standalone credit ratings from Moody’s and S&P Global, with both agencies placing the Scottish Government on the same high investment-grade level as the UK. First minister John Swinney will detail the bond programme next steps shortly.
Moody’s assigned an Aa3 rating and S&P Global an AA rating,
According to the Scottish government, the agencies based their rating on the strength and diversity of Scotland’s economy, as well as its institutional framework and financial management with low direct debt. Scotland rating is underpinned by the UK’s fiscal framework and borrowing limits.
Under current rules Scotland can only borrow within tight capital caps. Borrowings are capped at £450m per annum and £3bn in total. Any inaugural issue is expected to be modest in size relative to the UK gilt market.
Read more: ‘Kilts’ issuance details to come after 1 April 2025
The ratings clear the way for Scotland’s first “kilt” bond sale. Swinney is due to set out details of the bonds programme today.
Finance Secretary Shona Robison talking about the new ratings said:” This is an excellent result”.
She added: “The credit ratings will also support plans for a future Scottish Government bond issuance.”
©Markets Media Europe 2025
