Egan-Jones cuts UK sovereign rating to AA-minus

While most of the UK is having a double bank holiday for the queen jubilee
and the MSM is not paying any attention to anything else Egan Jones
downgrades the UK to AA- with Negative outlook.

"The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector," Egan-Jones said in a statement. "Unfortunately, we expect that the UK's debt/GDP (ratio) will continue to rise and the country will remain pressed." The United Kingdom currently has a AAA rating from both Standard and Poor's and Fitch Ratings and an Aaa rating from Moody's Investors Service. The economy contracted by 0.3 percent between January and March and growth in the second quarter is endangered by the mounting worries about the survival of the euro.

Edga Jones is usually well ahead of the game when it come to downgrading so in a few months
the others will follow.But with the UK in recession again it might be a bit sooner.

But it was only a matter of time before the Euro Crisis started to get its claws in to the
UK with its large financial sector.

REUTERS

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