UKs AAA Credit Rating Not At Risk Despite Large Debt

Thu, 10 Sep 2009

Britain is to keep its premium triple A credit rating, despite debts of nearly £175bn, it has been suggested.

Leading rating agency Moody's said that "it does not expect ratings to be downgraded in the near future" for any triple A minus rated economy.

The agency explained that the UK is unlikely to lose its gold standard rating because both Labour and the Conservatives have shown a willingness to curb public spending.

On Tuesday, both Chancellor Alistair Darling and Tory leader David Cameron signalled a determination to cut back on spending after the next election, adding to signs that the economy is finally emerging from the recession.

Pierre Cailleteau, head of sovereign risk at Moody's, said that Britain's public finances had clearly deteriorated, but the triple A status was "resilient".

He added that despite the economy being weakened by the credit crunch and the recession, a downgrade was "very unlikely".

Ireland's triple A credit status was downgraded in July, but Moody’s said Britain had significant advantages that were likely to ensure its debt remained affordable.
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