Moody’s: UK credit rating safe

| September 20, 2010 | 0 Comments
Moody’s: UK credit rating safe

Credit rating agency Moody’s has today said the UK’s top-ranked AAA credit rating is safe, as a result of the tough austerity measures, introduced by the coalition Government.

Despite slower economic growth, the rating agency said the outlook for the UK’s public finances remained stable.

There have been fears that the tough measures, announced by Chancellor George Osborne in the emergency budget in June, could pose a threat to the fragile recovery, because spending cuts and a hike in taxes will have slashed the forecast for growth, which therefore increases the possibility of a double dip recession.

While the coalition Government has faced much criticism for quickly introducing such measures, it has deemed them necessary in order to save Britain from the problems which debt-stricken Greece faces.

In its report, the rating agency said: “Moody’s stable outlook… is largely driven by the government’s commitment to stabilise and eventually reverse the deterioration in its financial strength.

“The UK economy appears sufficiently flexible and robust to grow moderately, even in the face of.. austere fiscal consolidation,” the agency added.

Also today, further positive news came from the Centre for Economic and Business Research (CEBR), who said the world is not at risk of a double-dip recession.

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