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| Version 1 | Version 2 |
|---|---|
| Moody's rating agency places UK on negative outlook | Moody's rating agency places UK on negative outlook |
| (40 minutes later) | |
| The US credit ratings agency, Moody's has placed the UK on negative outlook. | The US credit ratings agency, Moody's has placed the UK on negative outlook. |
| France and Austria, who also share a top triple A rating, have been similarly graded. | France and Austria, who also share a top triple A rating, have been similarly graded. |
| The credit ratings of Italy, Spain and Portugal have been downgraded. | The credit ratings of Italy, Spain and Portugal have been downgraded. |
| In a statement, Moody's blamed the euro area crisis for the adjustments citing the "susceptibility (of selected EU countries) to the growing financial and macroeconomic risks emanating from it." | In a statement, Moody's blamed the euro area crisis for the adjustments citing the "susceptibility (of selected EU countries) to the growing financial and macroeconomic risks emanating from it." |
| Responding to the ratings decision by Moody's the Chancellor of the Exchequer said: "This is proof that, in the current global situation, Britain cannot waiver from dealing with its debts." | Responding to the ratings decision by Moody's the Chancellor of the Exchequer said: "This is proof that, in the current global situation, Britain cannot waiver from dealing with its debts." |
| The coalition government has come under increasing pressure to ease up on its austerity measures in the face of growing unemployment and stalled economic growth. | The coalition government has come under increasing pressure to ease up on its austerity measures in the face of growing unemployment and stalled economic growth. |
| "Reality check" | |
| Treasury sources have sought to play down the significance of the ratings agency Moody's decision to place the UK's Triple A rating at risk. | |
| The source said the decision was not "entirely unexpected" given the difficult economic situation facing the UK. Much of the reason for the potential downgrade was a consequence of the difficulties in tech eurozone. | |
| The source said that Moody's made clear any "discretionary fiscal loosening" would make a downgrade more likely and that this underscored the need for the Government out stick to its deficit reduction strategy. | |
| The Chancellor's statement added: "Moody's are explicit that it is only the Government's 'necessary fiscal consolidation' that is stopping an immediate downgrade, which would happen if there were any 'reduced political commitment to fiscal consolidation'. | |
| "This is a reality check for anyone who thinks Britain can duck confronting its debts." | "This is a reality check for anyone who thinks Britain can duck confronting its debts." |
| The BBC's economics editor Stephanie Flanders said that the negative outlook for the UK means Moody's think there is a 30% chance of a downgrade within 18 months. | The BBC's economics editor Stephanie Flanders said that the negative outlook for the UK means Moody's think there is a 30% chance of a downgrade within 18 months. |
| A negative outlook is not the same as negative watch which means a more than 50% chance of a downgrade. | A negative outlook is not the same as negative watch which means a more than 50% chance of a downgrade. |
| "There is no suggestion, in the agency's statement, that it would like to see the UK ease up on austerity," said the BBC's Stephanie Flanders. | |
| "Quite the opposite. But the opposition will be quick to note that preserving Britain's top rating has long been a central plank of George Osborne's case for deeper cuts." | |
| "For this ratings agency, at least," says Stephanie, "Britain's triple A is at greater risk now than at any time since Mr Osborne's first budget." |