Cornwall Council and the AAA Rating

Today I received a press release from Cornwall Council which made me smile. This is to do with Cornwall Council being ‘awarded’ triple A rating by Moody’s. This is basically a rating for credit worthiness.

In the statement it is highlighted that only four other Local Authorities have been awarded this rating. These being Kensington and Chelsea, Greater London Authority, Working Borough Council and Birmingham City Council.

On face value this is good news because Cornwall Council has a better credit rating than many countries like America, Greece and Italy. However, what does this really mean?

For instance, Lehman Brothers had a Triple A credit rating weeks before it went to the wall. In fact, it had a AA rating literally minutes before it collapsed.