Boost for Osborne as UK credit rating remains AAA

One of the three globally important credit rating agencies, Moody’s Investors Services, has given the UK a clean bill of financial health, saying it will continue to rate Britain ‘AAA’. The news is a shot in the arm for Chancellor, George Osborne, and his supporters.

The Government has argued that draconian cuts in public spending are necessary to keep the UK as a top destination for companies seeking financial services, and a ‘AAA’ rating will be seen by some as validating Osborne’s strategy.

Kenneth Orchard, Moody’s chief analyst for the UK said: “The country's economic outlook is also more challenging because private sector deleveraging, the uncertain state of the financial sector and slower growth in the UK's main trading partners are not conducive to allowing GDP growth to return to its pre-crisis trend rate,"

He added: "Nevertheless, Moody's believes that the UK has the wherewithal and ability to meet these challenges whilst maintaining its AAA rating."

Read a full report at the Guardian. ·