Britain's credit rating downgraded

A failure of the govenment to deal with the debt burden. Sound familiar? Telegraph: Moody's announced on Friday night that it had cut the Government's bond rating one notch from 'Aaa' - the highest possible level - to 'Aa1'. He also took comfort that Moody's noted that "the UK's creditworthiness remains extremely high" thanks in part to a "strong track record of fiscal consolidation". The move is a significant setback for Chancellor George Osborne, who has faced criticism that his strategy for dealing with UK's huge debt burden is failing to deliver. Moody's pointed to "continuing weakness in the UK's medium-term growth outlook, with a period of sluggish growth which [it] now expects will extend into the second half of the decade". The credit ratings agency also noted that the Government's debt reduction programme faced significant "challenges" and that the UK's huge debts are unlikely to "reverse before 2016". Moody's said that despite...(Read Full Post)