Tuesday, December 20, 2011

Osborne rocked by warning that Britain could be stripped of AAA credit rating due to 'formidable challenges'

Note: Sounds to me they have found a way to force the UK to hand over Billions AGAIN for the Euro Bailout Fund.

George Osborne was last night rocked by a warning that Britain could be stripped of its gold-plated credit rating due to the crisis in the eurozone.

Leading ratings agency Moody’s said the UK’s coveted AAA score was safe for now with a ‘stable’ outlook – unlike many countries in the single currency bloc.

But it said Britain faces ‘formidable and rising challenges’ and the rating was ‘sensitive to future developments in the euro area’s debt crisis’.

The report said the ‘significant’ deterioration of the nation’s finances since 2008 ‘has eroded its ability to absorb further shocks’.

The warning came as Bank of England deputy governor Charlie Bean revealed ‘temporary’ loans would be made available to struggling UK lenders in the event of the break-up of the single currency.

He also said the Bank was ready to print even more money to kick-start Britain’s faltering recovery.

But any downgrade would be a major embarrassment for the Chancellor who has staked his political and economic reputation on protecting the UK from the storm raging in the eurozone. Read More