Britain may loose its AAA credit rating
Credit ratings agency S&P warned that Britain is still at risk of losing its AAA credit rating due to high levels of debt.S & P had stated that they can expel Britain from the elite club of top-rated nations if the Chancellor fails to lower the accelerating national debt.Along with it first quarter trade figures which showed a £9.62Bn deficit.
It might be a tough job for George Osborne to defend countries AAA-rating.Before the election, Osborne told voters: ‘Judge us by whether we can protect the UK credit rating.’
“A number of large and politically challenging spending decisions are still to be made,” the rating agency said Monday. “There is still a material risk that the U.K.’s net general government debt burden may approach a level incompatible with the ‘AAA’ rating.”
The negative outlook doesn’t necessarily signal a coming downgrade, but it does means there is at least a one-in-three chance of one, S&P said.