UK could lose AAA credit status in 2013

Economists are warning that Britain’s lifeless economy and slow progress in spending cuts endangers its privileged AAA credit status, which may be downgraded by credit ratings agencies this year.

This week, thirty-one economists surveyed, gave a median 60 percent chance that Britain would lose its ‘AAA’ credit rating in 2013 as it is struggling to avoid a third recession.

Recently, ratings agency Fitch said the chances of Britain losing its triple-A status are ‘clearly increasing’, warning it could pull the trigger if the country’s budget in March shows that debt levels continue to rise.

This comes as the British government borrowed an extra £15.4 billion in December, a figure higher than predicted by most analysts.

The United States and France have had their ‘AAA’ ratings slashed without a spike in government borrowing costs, and few would expect any difference for Britain, reports Press

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