“While disappointed at the news of the credit downgrade by the S&P ratings agency, the threat of a downgrade has been looming for the past 18 months:
- Although the latest political and economic shifts have been negative, the downgrade has in many ways already been priced into the current trading markets.
- We therefore expect the property market to remain stable for the time being with any real effects only filtering through later in the year.
- That said, one cannot ignore that the actual realisation that “junk status” sends a major blow to consumer confidence and will have a longer term negative impact on the economy and we again emphasise the need for political and economic stability.
- For now though, there is no need to panic and it is not all doom and gloom. We expect business as usual for the property market.”
Samuel Seeff, Chairman of Seeff Property Group.