Scotland has been awarded a high investment grade credit rating by two leading global agencies, placing the Scottish Government on the same level as the UK and ahead of major economies including Spain, Italy and Japan.
The ratings, issued by Moody’s and S&P Global, are the first ever assigned to the Scottish Government and mark a significant step toward launching a future bond programme to support national infrastructure investment.
Moody’s has rated Scotland at Aa3, while S&P Global has issued an AA rating, both identical to the UK’s own sovereign credit score.
The agencies highlighted Scotland’s economic diversity, strong institutional framework and the Scottish Government’s prudent approach to financial management as key factors behind the rating. Low levels of debt were also noted as a major strength.
Finance Secretary Shona Robison said the decision represents a major vote of confidence in Scotland’s economic capability and long-term stability.
“This is an excellent result on a level with the UK’s sovereign rating and better than many major industrial countries which reflects our strong track record of prudent fiscal policy and responsible debt and financial management,” she said.
She added that a strong credit rating will help strengthen Scotland’s appeal to global investors.
“High credit ratings will support our wider efforts to boost economic growth by providing one of the clearest signals that Scotland is a place to invest in and do business,” she said.
“The credit ratings will also support plans for a future Scottish Government bond issuance.
“An update on progress will be set out by the First Minister tomorrow.”
The ratings form part of a roadmap laid out following the Scotland Act 2016, which gave the Scottish Parliament the power to issue its own government bonds for capital investment.
The Scottish Government has been working with EY as advisers ahead of the bond programme, which First Minister John Swinney is expected to outline further on Thursday.
The move is intended to give Scotland more direct control over how it finances major infrastructure, and to widen the tools available to support economic growth, public services and long-term national development.
For Scotland, the credit ratings represent a milestone moment: confirmation from international markets that the country’s financial management is stable, disciplined and investment-ready.
