Britain may lose its top notch credit rating unless the government formed after the election carries out drastic cuts to the country’s deficit, Standard & Poor’s warned.
“In the absence of a strong fiscal consolidation plan, the UK’s net general government debt burden may approach a level incompatible with an ‘AAA’ rating,” the credit ratings agency said in a statement.
S&P kept its negative outlook on the economy, but postponed a decision on a possible downgrade until after the election. Fitch, another rating agency, warned on a possible downgrade last week, saying that budget cuts announced by chancellor Alistair Darling last week were not big enough.
Full story: UK’s AAA credit rating in danger – S&P | Business | guardian.co.uk