Savile Scandal Affects Bbc's Credit
The child-abuse scandal involving former BBC host Jimmy Savile has now impacted the public broadcaster's credit ratings. As reported by today's (Monday) London Financial Times, Moody's Investors Services has downgraded the broadcaster's mortgage bonds where it is the sole tenant. Moody's also cited the BBC's ongoing challenge to provide high-quality programming in the wake of cutbacks and uncertainty over the renewal of the BBC's license fee in 2016. The BBC quickly responded, saying that it disagreed with Moody's assessment and noting that it was likely triggered by the overall downgrade of the U.K. last week, which called into question the country's austerity measures and sluggish economy. The Savile related events of recent months have had no significant impact on the BBC's finances this year and are not anticipated to in the future, it said.