- But cautions that the government's efforts to achieve fiscal consolidation and reduce debt over the next few years are being hampered be weaker economic prospects as well as by the risks posed by the ongoing euro area debt crisis.
- Moody's will revisit the Aaa rating and outlook in the first few months of 2013 to assess the impact of these challenges and of the government's upcoming Autumn Statement.
- The rating agency's report is an annual update to the markets and does not constitute a rating action.
- In Moody's opinion, the UK government's most significant policy challenge is balancing the need for fiscal consolidation against the need for economic stimulus. The rating agency expects that the upcoming Autumn Statement, which will be released in December 2012, will provide greater clarity on how the government plans to manage this balancing act.
14 Nov 2012 - 16:47 - Fixed Income - Source: Newswires
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: