Austerity measures help UK keep AAA rating-Moody's

clock

The UK has maintained its AAA credit rating largely thanks to the austerity measures of the coalition government, although it remains vulnerable over the long term.

In its latest annual credit report on the UK, Moody's points out the work being done to tackle the nation's balance sheet means the rating is unlikely to change in the foreseeable future. However, the agency also warns the rating is not certain over the long term, with moderate growth and minimal disruption from the restructuring of the banking sector needed to maintain it. It is also predicated on a primary budget balance that is in surplus by around 2014. The agency says: "Moody's envisages a number of scenarios under which the UK's AAA rating could potentially come under pressur...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

UK inflation falls to 3% to give BoE 'green light' for rate cut

UK inflation falls to 3% to give BoE 'green light' for rate cut

In line with expectations

Michael Nelson
clock 18 February 2026 • 2 min read
Leaked Budget document viewed almost 25,000 times ahead of speech

Leaked Budget document viewed almost 25,000 times ahead of speech

Office for Budget Responsibility chair Richard Hughes quit as a result

Jenna Brown
clock 11 February 2026 • 2 min read
BoE's Andrew Bailey: World economy 'remarkably resilient' amid uncertainty

BoE's Andrew Bailey: World economy 'remarkably resilient' amid uncertainty

Markets now 'cautious'

Patrick Brusnahan
clock 09 February 2026 • 1 min read