The grim economic growth prospects in Europe have been reflected by a recent downgrade of the United Kingdom's AAA rating. Today, Feb. 23, 2013, Forbes has reported, Moody's Downgrades UK's AAA Rating: Not Much Happens. This downgrade may not have a major impact on the economic climate in the region unless Fitch and S&P take similar moves.
James O'Tool has also reported on this story for CNN Money, Moody's downgrades United Kingdom from AAA. On Friday Moody's rating agency stripped the United Kingdom of its AAA credit rating. This has made the United Kingdom the latest European country to be confronted with a downgrade amidst the continent's poor growth prospects.
The U.K. has been knocked down one notch to Aa1, but with its ratings outlook at stable.
Moody's has said that the primary reasons for the downgrade included the country's rising debt burden and slow growth outlook over the next few years. Moody's has said, "Although the U.K.'s debt-servicing capacity remains very strong and very capable of withstanding further adverse economic and financial shocks, it does not at present possess the extraordinary resilience common to other AAA-rated issuers."