Leaviss: US will lose AAA rating

The US will lose its AAA credit rating in the coming years while the UK will struggle to maintain its rating, warns M&G's Jim Leaviss.

The group's head of retail fixed interest says as the effects of fiscal expansion wane, so will economic growth, leaving the rating of the US and the UK under pressure. Leaviss believes the US could even lose its rating, although this may not happen for at least another year, as economic growth continues at sub-trend levels. "Economic growth at these types of levels will not make the inroads into improving the labour markets of these economies the central banks want to see. "It is likely the AAA credit rating of the US and the UK will come under pressure in coming years, eventually...