Moody's puts UK's prized AAA rating on notice

The UK's prized triple-A credit rating was under threat last night after US ratings agency Moody's put it on negative outlook, citing pressures from the eurozone.

It means Moody's thinks there is a 30% chance of a UK downgrade within 18 months. Moody's said it was primarily concerned with the "weaker macroeconomic environment, which will challenge the government's efforts to place its debt burden on a downward trajectory over the coming years". It highlighted the eurozone as a marked threat to the UK. "Although the UK is outside the euro area, the high risk of further shocks (economic, financial or political) within the currency union are exerting negative pressure on the UK's AAA rating given the country's trade and financial links with the...