International rating agency Standard & Poor `s (S & P) has lowered the forecast yesterday for the first time the UK credit rating to negative from stable, saying that by 2013 the public debt could reach 100% of GDP. Thus, the United Kingdom could become the fifth country to which the rating would be lowered because of the deteriorating economic situation. Since the publication of a statement S & P plummeted rate British currency and stock index FTSE 100.
The international rating agency S & P lowered the credit rating outlook from stable to Britain because of the negative political uncertainty and deteriorating financial situation in the country. According to S & P, the debt of Great Britain continues to grow and may reach 100% of GDP by 2013. "Even taking into account the additional measures to tighten financial controls, the net government debt could reach 100% of GDP and remain at that level in the medium term" - the rating agency said analyst David Beers. This agency has maintained a long-term credit rating of AAA and short-term rating A-1 +. S & P analysts noted that the actual change in credit rating of Great Britain will take place only after the parliamentary elections scheduled for next year, and only if the new government measures to reduce the budget deficit will be declared unsatisfactory.
Experts S & P believes that the UK authorities have not yet fully realized that the financial situation of the country is deteriorating rapidly. " In doing so, analysts emphasize that if the British authorities a five-year plan designed to reduce the budget deficit, will give positive results, assessing the British economy in the long run may be revised from negative to stable.
Following the S & P statement made by the other two major agencies - Moody `s and Fitch - a presentation that are not yet planning to revise their forecasts of the credit rating of Great Britain.
"This is a real test for the British Government", - said Lloyds TSB economist Kenneth Brooks. S & P has lowered the credit rating of Ireland, Greece, Portugal and Spain.
The result of the publication of a statement S & P has been a dramatic drop in stock index FTSE 100 on the London Stock Exchange bid. Index finished the trading session down at 2.7%. In turn, the British pound fell 1.2% to the dollar and euro - up to $ 1.5546 and € 0,8849 respectively.
The international rating agency S & P lowered the credit rating outlook from stable to Britain because of the negative political uncertainty and deteriorating financial situation in the country. According to S & P, the debt of Great Britain continues to grow and may reach 100% of GDP by 2013. "Even taking into account the additional measures to tighten financial controls, the net government debt could reach 100% of GDP and remain at that level in the medium term" - the rating agency said analyst David Beers. This agency has maintained a long-term credit rating of AAA and short-term rating A-1 +. S & P analysts noted that the actual change in credit rating of Great Britain will take place only after the parliamentary elections scheduled for next year, and only if the new government measures to reduce the budget deficit will be declared unsatisfactory.
Experts S & P believes that the UK authorities have not yet fully realized that the financial situation of the country is deteriorating rapidly. " In doing so, analysts emphasize that if the British authorities a five-year plan designed to reduce the budget deficit, will give positive results, assessing the British economy in the long run may be revised from negative to stable.
Following the S & P statement made by the other two major agencies - Moody `s and Fitch - a presentation that are not yet planning to revise their forecasts of the credit rating of Great Britain.
"This is a real test for the British Government", - said Lloyds TSB economist Kenneth Brooks. S & P has lowered the credit rating of Ireland, Greece, Portugal and Spain.
The result of the publication of a statement S & P has been a dramatic drop in stock index FTSE 100 on the London Stock Exchange bid. Index finished the trading session down at 2.7%. In turn, the British pound fell 1.2% to the dollar and euro - up to $ 1.5546 and € 0,8849 respectively.
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