UKrating cut is unlikely
MOODY’S is today expected to say that it is unlikely to cut the UK’s all-important triple-A credit rating due to the growing agreement among politicians on the need to cut the budget deficit.
Alistair Darling yesterday said he “wouldn’t flinch from difficult decisions” to tackle government debt, after shadow chancellor George Osborne warned Britain risked losing the confidence of international markets unless it started “dealing with this debt problem”.
Moody’s earlier this year said that it would examine whether policymakers are taking imprudent risks with public finances, thereby weakening sovereign creditworthiness.
Indications that both political parties are agreeing to cut public spending may mean Moody’s views the UK’s escalating debt as manageable.
Moody’s last night was unavailable for comment.