The London Daily News

10 February, 2010 10:06 (GMT +00:00)

Britain’s credit rating looking at downgrade

City News Desk

The UK's credit rating is facing a potential downgrade, following a higher than expected trade deficit, with £7.3 billion goods imported in December up from £6.8 billion in November, against a projected £6.6 billion from economists.

Fitch the credit rating agency has said that the UK remained one of the countries it feared were more vulnerable to losing its AAA rating, "The UK, among the AAAs, is one of the most vulnerable with Spain and France".

Standard and Poor has already downgraded the outlook on the UK economy from a "stable" to "negative" outlook, which will put more pressure on the new British government to embark on deep and immediate fiscal cuts.

The imbalance between imports and exports "were a blow" The Times reports to policymakers in London, who have been eager to see a "rebalancing of the country's economy moving from reliance on consumer spending to export led growth".

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