“A downgrade of the U.K. could in our view happen in 2012 and we believe it can remain a market theme into 2013,” Danske Bank analysts John Hydeskov and Hugo Railing said in a report dated yesterday. “It would of course create a lot of public furor and cause U.K. politicians to criticize rating agencies, but it would not lead to a huge gilt sell-off and we believe there would still be plenty of demand for British debt.”
