The UK's AAA credit rating has been downgraded for the first time in over thirty years, indicating that the country's debt and economic situation remains in the doldrums.
The ratings agency Moody's stated that it reduced the AAA rating due to continued weakness in the nation's medium-term growth outlook and expects sluggish growth to extend into the second half of this decade.
Moody's added that the UK's creditworthiness remained particularly high because of its credit strengths, such as possessing a highly competitive and well-diversified economy and having a strong history of fiscal consolidation.
The Chancellor of the Exchequer, George Osborne, said the downgrading was a "stark reminder of the debt problems facing our country".
Pound sterling fell to a two and a half-year low against the US dollar following Moody's announcement last Friday.
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