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Britain Keeps Aaa Credit Rating

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http://www.guardian.co.uk/business/2010/sep/20/britain-keeps-aaa-credit-rating

George Osborne received a boost today when his plans to tackle Britain's budget deficit were strongly endorsed by one of the world's three big credit rating agencies.

Moody's Investors Service said it was maintaining its top AAA rating for the UK as a result of the government's action to repair the hole in the UK's public finances caused by the recession of 2008-09.

While stressing that risks of a downgrade were still present, Moody's said it believed the economy was resilient enough to cope with the chancellor's planned austerity package.

"The global financial crisis of 2008-09 caused serious long-term damage to the British government's balance sheet. The country's economic outlook is also more challenging because private sector deleveraging, the uncertain state of the financial sector and slower growth in the UK's main trading partners are not conducive to allowing GDP growth to return to its pre-crisis trend rate," says Kenneth Orchard, Moody's lead analyst for the UK. "Nevertheless, Moody's believes that the UK has the wherewithal and ability to meet these challenges whilst maintaining its AAA rating."

The ratings agency added that its "stable outlook" on the UK implied that there was no imminent prospect of a downgrade – a move that would potentially increase the cost of servicing the UK's debt. Its display of confidence in Britain was largely driven by the government's commitment to "stabilise and eventually reverse the deterioration in its financial strength". Moody's added that government debt was also well-structured, while the UK economy appeared sufficiently flexible and robust to grow moderately, even against a backdrop of "austere fiscal consolidation".

Yeah! AAA status and we've got well structured govt debt.

Excellent news for the recovery.

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"The global financial crisis of 2008-09 caused serious long-term damage to the British government's balance sheet

No it didn't.

It was years of Labour overspending that damaged the balance sheet.

Labour must be proud of Moodys writing garbage like that. If some people read it enough times they might start believing it.

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.teehs ecnalab eht degamad taht gnidnepsrevo ruobaL fo sraey saw tI

?

¡ʇɐɥʇ ƃuıʎɐs ɹoɟ ʇsıɹoɹɹǝʇ ɐ ǝɹ,noʎ

Edited by ken_ichikawa

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Whenever I see someone write 'buddy' I get visions of someone seething over their keyboard - as opposed to a pally fist on the arm.

:)

I meant it in a nice way. Kind of like when your 3 year old kid drops his sandwich in the dirt.

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You got that completely the wrong way round buddy.

it was years of labour underspending that helped the current balance sheet?

Edited by nohpc

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The sad thing is that I could see myself voting for old Labour under certain circumstances. I mean, I'm a decent bloke, I like to see equality, I like to see the underdog given a chance. But ZanuLab have sealed in my mind, heart and soul a hatred that can never be undone. A hatred that will ensure that I vote tactically for the rest of my life to keep them out of power. I am now convinced that the whole movement is motivated by evil intent. Tony and his golum have seen to that.

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Heh heh heh.

This ringing endorsement has to be good for sterling.

That's going to have some consequences.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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