Britain's AAA rating at risk: Moody's

English.news.cn   2011-12-21 18:42:59               LONDON, Dec. 21 (Xinhua) -- Britain's AAA sovereign debt rating could be at risk under threat from the eurozone debt crisis, ratings agency Moody's warned on Tuesday. The agency's end-of-year assessment said Britain's AAA rating was currently still safe but there were "formidable and rising challenges" ahead. Britain's ability to absorb further economic shocks deteriorated in the last year because of weak growth, Moody's said. "The government's ongoing commitment to large-scale deficit reduction is very important to the AAA rating and stable outlook," Moody's said. The ratings agency downgraded its own forecast for British growth this year to 1.6 percent from 2.0 percent, below the 1.7 percent forecast by the government's independent Office for Budget Responsibility. Any rating downgrade would drive up borrowing costs, which could jeopardize the already stuttering economic recovery. Related: Britain to rejoin EU talks to address debt crisis LONDON, Dec. 16 (Xinhua) -- British officials will rejoin talks with EU counterparts to negotiate a new fiscal agreement, a Downing Street spokesman said on Friday. "The prime minister reiterated that he wants the new fiscal agreement to succeed, and to find the right way forward that ensures the EU institutions fulfil their role as guardian of the EU treaty on issues such as the single market," the spokesman said on behalf of the British Prime Minister David Cameron. Full story Yearender: EU trudges ahead with multiple reforms BRUSSELS, Dec. 20 (Xinhua) -- Two years into a debilitating debt crisis, the European Union (EU) has undertaken a slew of reforms to weather the hard times and spur growth. But to cure the crisis once and for all, it will take years. EU is on the right track. But the road ahead will be anything but smooth. http://news.xinhuanet.com/english/business/2011-12/21/c_131319834.htm Full story Special Report: Global Financial Crisis