The pound fell against the dollar and the yen after a news report that credit ratings agencies Moody’s and S&P are reviewing the UK’s AAA credit rating on concern about the UK’s rising debt burden, reports Bloomberg. The Daily Telegraph quoted Moody’s lead analyst saying that the UK Treasury’s projections that public sector net borrowing will remain above 5% of GDP five years from now “are a cause for concern”, and cited bond market sources saying that credit agencies were “already stress-testing the UK again for a possible downgrade”.

This entry was posted by Gwen Robinson on Friday, April 24th, 2009 at 5:11 and is filed under Capital markets. Edit this entry.