The Eurozone crisis continues to dominate the economic backdrop. The latest development has seen US credit ratings agency Moody’s putting the UK on negative outlook meaning it thinks that there is more chance (30%) that the economy may lose its triple A status.
France and Austria who similarly share a triple A ratings have been similarly graded whilst Italy, Spain and Portugal rating’s have been lowered.
As governments wrestle with their respective debt burdens the only certainty is there is no silver bullet.
The all pervading sense of nervousness will continue to impact on all business sectors. The days of easy access to finance are long gone. Companies need to focus on their exposure at every level ranging from inventory levels, rate of stock turn and the integrity of the debtor’s book.
Operating in this current climate of austerity will provide the ultimate challenge for those managing companies, be it an SME or a large multi-national corporation.
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