UK loses top AAA credit rating

  • The United Kingdom has lost its top AAA credit rating for the first time since 1978 on the back of expectations that growth will "remain sluggish over the next few years".

    On Friday, ratings agency Moody's became the first to cut the UK from its highest rating, to Aa1.

    Moody's said the economy faced significant "challenges that subdued medium-term growth prospects pose to the government's fiscal consolidation program, which will now extend well into the next parliament".

    The UK has had a top AAA credit rating since 1978 from both Moody's and S&P.

    Moody’s added that the UK's debts, the equivalent of 68 percent of the country's annual GDP at the end of last year, were unlikely to reverse until 2016.