UK Loses Top Credit Rating


By Europe correspondent Philip Williams

Posted February 23, 2013 21:41:22

Ratings agency Moody has downgraded the UK’s credit rating from AAA to Aa1.

Related Story: EU predicts recession to continue through 2013

Related Story: EU leaders hit out at Cameron’s poll pledge

It is the first time since the 1970’s that Britain has not had the top rating…

The downgrade is a huge political blow for the government, especially chancellor George Osborne who said it was a stark reminder of the debt problems facing the country.

Moody’s said the government’s debt reduction program faced big challenges ahead as the British economy struggles with recession and unemployment.

The UK has enjoyed a AAA rating since 1978 and Moody’s said economic growth would remain sluggish, but added the country ‘s credit worthiness remains extremely high.

Shadow chancellor Ed Balls said it was a “humiliating blow” to the chancellor and the prime minister who had said the AAA rating was a mark of economic and political credibility.

http://www.abc.net.au/news/2013-02-23/uk-loses-top-credit-rating/4536122

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s