Moody’s strips UK of Aaa rating and Osborne feels the pressure
Reuters.com – 22/02/13
The United Kingdom saw its first ever sovereign credit ratings downgrade from major rating agency, Moody’s on Friday. Moody’s downgraded the UK one notch from Aaa to Aa1, with a stable outlook. Britain has had the highest credit rating with Moody’s and S&P since 1978, and with Fitch since 1994. Moody’s cited weak prospects for the British economy, sluggish expected growth, and a struggle for borrowing reduction as the reason for downgrading the country.
The 1 notch drop in the country’s credit ratings will have a limited economic impact. Politically speaking however, it increases the pressure on Finance Minister George Osborne. Osborne insists that now is not the time to change course and borrow more, as other parties have suggested. Read More