S&P Affirms Great Britain’s AAA

April 23, 2012 by · Leave a Comment
Filed under: S&P 

In a statement, Standard & Poor’s affirmed that Great Britain’s AAA credit rating was secure. The rating agency endorsed the Chancellor’s deficit reduction scheme saying that the country’s “wealthy and open economy” improved its “capacity to absorb shocks.”

However, the agency warned in the same statement that the Government’s austerity program would be a drag on Great Britain’ s economy in the coming years: household spending would be impacted by weak wage growth, there would be increasing unemployment, and the housing market would remain soft or deteriorate even more.

George Osborne, Chancellor of the Exchequer and a member of the Conservative party is quoted by The Telegraph as saying that without austerity Britain would encounter “an economic catastrophe”.

“Britain is weathering the international debt storms because of the policies we have adopted and stuck to in tough times,” he said.

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