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Moody's downgrades UK rating from AAA to AA1

Credit ratings agency Moody's Investors Service downgraded Britain's government bond rating one notch from the top AAA to AA1 Friday, and said that sluggish growth and rising debt were weakening the country's medium-term outlook.

 

British treasury chief George Osborne said the blow only redoubled his resolve "to deliver our economic recovery plan," based on deep spending cuts. Moody's said "subdued" growth prospects and a "high and rising debt burden" were weighing on the British economy. (AP)