Bloomberg News

Osborne Says U.K. Program Averted Immediate Moody’s Downgrade

February 13, 2012

Feb. 13 (Bloomberg) -- Chancellor of the Exchequer George Osborne said his fiscal consolidation program is the only thing stopping Britain from an immediate downgrade after Moodys Investor Service said it was putting the nation’s sovereign debt on negative outlook.

“This is proof that, in the current global situation, Britain cannot waiver from dealing with its debts,” Osborne said in an e-mailed statement released by the Treasury in London today. “Moody’s are explicit that it is only the Government’s ‘necessary fiscal consolidation’ that is stopping an immediate downgrade, which would happen if there were any ’reduced political commitment to fiscal consolidation including discretionary loosening’. This is a reality check for anyone who thinks Britain can duck confronting its debts.”

To contact the reporter on this story: Gonzalo Vina in London at

To contact the editor responsible for this story: John Simpson at

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