Moody`s rating agency places UK on negative outlook
Baku, february 14 (AZERTAC). The UK`s top-rated AAA credit rating has been placed on "negative outlook" by US credit ratings agency Moody`s.
It said its decision followed concerns over growth prospects and the possible impact from the eurozone crisis.
The move implies the UK has a 30% chance of losing its AAA credit rating within 18 months.
France and Austria have also been warned by Moody`s over their top rating, and Italy, Spain and Portugal`s ratings have been lowered.
"This is yet another organisation - in this case a credit ratings agency - warning Britain that if we spend or borrow too much we`re going to lose our credit rating," UK chancellor George Osborne told the BBC.
"It was a reality check for the whole political system that Britain has to deal with its debts," he added.
Shadow chancellor Ed Balls described Moody`s action as a "significant warning".
He said: "We have consistently argued that the chancellor`s gamble - raising taxes and cutting spending too far and too fast - would backfire," he added.
BBC economics editor Stephanie Flanders said there was no suggestion that the agency would prefer the UK government to change its economic policy of austerity.
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