Scotland Earns UK-Level Credit Rating Ahead of First Bond Issue
14th Nov. 2025
Scotland has achieved the same credit rating as the UK for its first issuance of debt bonds, an important milestone in building “Scotland’s future economy.” Credit rating agencies Moody’s and S&P Global rated the Scottish government as Aa3 and AA, respectively, equal to the UK’s sovereign credit rating. This will bolster investor confidence in Scotland’s debut in the global capital markets for infrastructure funding.
Moody’s says that the rating is based on Scotland’s history of “prudent fiscal management” and its overall economic strength. S&P also pointed it’s “strong economy” and the fact that it works “within a stable and predictable institutional framework” with clear agreements with the UK government. But both agencies said that a push for independence could lead to a downgrade in the future.
Ten years ago, the Scottish government got the power to issue bonds, but so far it has only borrowed money from the UK’s National Loans Fund. A recent study showed that issuing its own bonds could be better for the long term and give it more financial freedom.
Finance Secretary Shona Robison has praised the assessment, claiming it highlights the “strength and diversity” of Scotland’s economy and indicates “responsible financial management.” When she spoke to BBC’s Good Morning Scotland, she indicated, “This is about creating a gateway to attract global investment and to position Scotland as a secure and reliable place to do business.”
The bonds, which have been nicknamed “kilts” to reference the UK’s “gilts,” may raise up to £472 million for capital investment next year. This would take Scotland’s total capital borrowing to £2.7 billion, almost hitting its legal ceiling of £3.1 billion. Economists believe the development may pave the way for other devolved Governments and Councils to pursue funding of this nature in the years to come.
Web Resources on Scotland’s UK-Level Credit Rating
1. BBC.com: Scottish government aiming to issue first bonds in 2026-27
2. TheGuardian.com: Scotland plans to issue £1.5bn of its own bonds
3. FinancialTimes.com: Scotland to sell £1.5bn of ‘kilts’ bonds after getting same credit rating as UK