Moody’s warns Britain facing fiscal crisis
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Leading ratings agency Moody’s Investors Service has warned that Britain faces a “fiscal crisis” of several years unless drastic Government action is taken to repair the damage.
The news sparked uncertainty ahead of today’s pre-Budget report about a potential downgrade to the prized national AAA credit rating.
Yesterday’s report from Moody’s said that AAA-rated British and US economies were both classified as “resilient” with the capacity to bounce back but will struggle to find the money to reduce huge public debts.
It said: “Public finances are deteriorating considerably and may therefore test the AAA boundaries, but which display, in our opinion, an adequate reaction capacity to rise to the challenge and rebound.”
However it added that this: “will have to be validated by actions in the not-too-distant future to continue to provide support for the rating.”
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Readers' comments (1)
Evan Owen | 9 Dec 2009 11:22 am
AAA Don't you just love ratings agencies, did they rubber stamp all the toxic assets which got us into this mess?
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