Austerity measures help UK keep AAA rating-Moody's

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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...

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