11 November 2009

Rating Cut in Store for UK

The UK faces yet more tough times ahead as it battles to keep its sovereign AAA rating. The credit rating agency Fitch has warned that the UK stands to be downgraded and is the only of the AAA nations to be in jeopardy.

The main reason? The vast budget deficit is the principle problem. It is feared by various economists, financial bodies and analysts that the deficit will reach close to 200 billion GBP by the close of this financial year.

Gordon Brown now adds this to the latest of many awkward situations in his term as Prime Minister.

The British Pound took a sharp knock thanks to the rating scare and fell against the US dollar and the euro after what had been a fairly strong day.

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