Credit rating and Parliamentary supremacy: Difference between pages

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1. ''Larger organisations - borrowings - securities - bonds - credit rating agencies.''
''UK law''.


A standardised assessment, expressed alphanumerically, of the creditworthiness of an entity raising debt capital – be it a company, an investment vehicle (mutual fund), a country (sovereign) and its affiliated public agencies or regional/local authorities or a supranational institution – provided by credit rating agencies to investors and analysts.  
The historical principle in UK law that the UK Parliament was 'supreme' in its law-making powers.


Credit ratings also serve as a measure of the risks related to specific financial investments.
This principle was fundamentally affected when the UK joined the EU in 1973.


Parliamentary supremacy meant that:


2. ''Smaller & medium sized organisations - credit reference agencies.''
#The UK Parliament was able to make UK law as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.  
#No UK Parliament could bind its successor.  Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.
#The UK courts had to apply the relevant statute law enacted by the UK Parliament.
By joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK.


An external assessment of general creditworthiness for a smaller organisation, provided by a credit reference agency.
The effect of becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states.


The position now is that: 


== See also ==
#The EU may pass legislation directly for the UK.
* [[AAA]]
#The UK cannot, generally, make laws that conflict with EU law.
* [[Agency]]
#Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law. 
* [[Bond issue]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Corporate credit ratings: a quick guide]]
* [[County court judgment]]
* [[Credit]]
* [[Credit Benchmark]]
* [[Credit estimate]]
* [[Credit migration risk]]
* [[Credit Quality Step]]
* [[Credit rating agency]]
* [[Credit reference agency]]
* [[Credit risk]]
* [[Credit score]]
* [[Credit watch]]
* [[Creditworthiness]]
* [[Downgrade]]
* [[ESG ratings]]
* [[ESG Relevance Score]]
* [[Fitch]]
* [[ICR]]
* [[Investment grade]]
* [[Junk]]
* [[Moody's]]
* [[Mutual fund]]
* [[NAIC]]
* [[Non-investment grade]]
* [[Notch]]
* [[pi]]
* [[Pricing grid]]
* [[Prime]]
* [[Private rating]]
* [[Public information rating]]
* [[Public rating]]
* [[Rated]]
* [[SACP]]
* [[Solicited rating]]
* [[Sovereign]]
* [[Standard & Poor's ]]
* [[Sub-prime lending]]
* [[Supranational]]
* [[Toxic]]
* [[Unrated]]
* [[Unsolicited rating]]
* [[Upgrade]]




==Other link==
== See also ==
[[Media:Nov14TTtreasuryessentials46.pdf |Measuring up, The Treasurer, Nov 2014]]
* [[European Union ]]
* [[Sovereignty]]


[[Category:Manage_risks]]
[[Category:Compliance_and_audit]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 10:40, 8 October 2013

UK law.

The historical principle in UK law that the UK Parliament was 'supreme' in its law-making powers.

This principle was fundamentally affected when the UK joined the EU in 1973.

Parliamentary supremacy meant that:

  1. The UK Parliament was able to make UK law as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.
  2. No UK Parliament could bind its successor. Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.
  3. The UK courts had to apply the relevant statute law enacted by the UK Parliament.

By joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK.

The effect of becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states.

The position now is that:

  1. The EU may pass legislation directly for the UK.
  2. The UK cannot, generally, make laws that conflict with EU law.
  3. Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.


See also