TRIPLE A – THE EXCLUSIVE CLUB OF 9

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TRIPLE A – THE EXCLUSIVE CLUB OF 9

CBRE research revealed at MIPIM today showcased that Germany has edged out the UK as the number one European country to invest in. As we all know UK also lost its triple-A credit rating a couple of weeks ago. The news was dropped as a bomb-shell but was somehow expected. Naturally, the expected loss also explains why investors would rather look at Germany.

Due to the downgrade, now only a very exclusive club of nine members hold the desirable triple-A rating promising “risk-free” operation as a result of the countries’ stable outlook. One of them is Sweden. With its tiny 9 million population, the country has managed to showcase a stable and secure growth through the whole of the financial downturn along with its Scandinavian neighbours resulting in investors viewing Scandinavia as a ‘safe heaven’.  A quite impressive achievement considering that smaller economies often are unable to withstand the performance on the global market but with the right strategy and finances in order it can be done.

No doubt the downgrade is negative news for the UK. It is however important to remember that it cannot be applied equally to the whole of UK. Investors no longer look at countries as whole when making their investment decisions. Instead investors’ look at regions or cities and London is a great example. If London was a country it would certainly not been losing its rating, in fact it is ranked as Europe’s most attractive city to invest in. Also the rating is just one of many indicators demonstrating how well a country is doing.

Sara Henriksson, Account Manager

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