Budget is supportive of UK's AAA rating

Last week both Moody's Investor Services and Fitch Ratings said the emergency Budget is supportive of the UK's AAA rating.

Kenneth Orchard, Moody's vice president described the Chancellor's measures as "a key step towards reversing the significant deterioration in the Government's financial position that occurred over the past two years." He says: "The Budget confirmed the UK Government's intention to eliminate the structural current deficit by 2015-16. Successful implementation would return the Government's finances to a more sustainable trend." However, the ratings agency cautions that there are implementation risks associated with the Budget measures. "The rapid fiscal consolidation will have a strong ...