“This is a very proud day for Scotland, because we’ve achieved the highest possible credit rating that we could do within the United Kingdom,” Scotland’s First Minister John Swinney said in an interview with POLITICO. “It’s a reflection of the strength of the Scottish economy, the strength of our financial management and the strength of our financial institutions.”
The Scottish government will issue its first bonds next year, with a £1.5 billion bond program planned over the life of the next parliament.
“The focus of that would be on key capital investment priorities around net zero and housing to make sure that Scotland is equipped for the long-term challenges that we face,” said Swinney.
Devolved powers given to Scotland in 2016 — two years after a failed referendum bid to take the country out of the U.K. — allow the issuance of government bonds for capital investment. But both credit agencies which gave Scotland its favorable grade stressed that their ratings could be cut if Scotland moved towards independence from the U.K., something Swinney’s government has long push for.
Swinney acknowledged “there will always be context which affects the credit ratings and ratings agencies will assess different dynamics and different factors,” but he said he took “confidence” from the strength of Scotland shown by the ratings.
“These are significant sources of assurance, but obviously we’ve got to ensure that we take forward responsible and focused investment programs that strengthen the Scottish economy to deal with any assessments that might change in the years,” he said.