Britain's AAA credit rating at risk

Dec 6, 2012

Ratings agency Fitch suggests Britain could lose its triple-A rating

Ratings agency Fitch has suggested that Britain's AAA credit rating is at risk following the bad economic news unveiled by Chancellor George Osborne in his Autumn Statement, according to the Financial Times. Osborne admitted it would be impossible to meet his target of reducing debt as a share of public income by 2015-16. The national debt is expected to increase by £105 billion instead. This is blamed on stubbornly weak economic growth. Fitch, who will review Britain's credit rating next year, said: "Missing the target weakens the credibility of the UK's fiscal framework, which is one of the factors supporting the rating". Credit ratings determine the interest rate that borrowers pay lenders. Losing the top-tier rating would increase the cost of servicing Britain's national debt which now stands at over £1.2 trillion.

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