UK warned of credit downgrade

The UK will lose its prized triple-A credit rating next year as a result of the recession and the euro crisis, according to one of the City's most respected bond fund managers.

Richard Hodges, the manager of the Legal & General dynamic bond trust, said in the light of the euro sovereign debt crisis: "The question isn't will the UK be downgraded, but when? The ratings agencies haven't moved partly because they have bigger fish to fry. But as this crisis plays out it is inevitable that they will downgrade the UK, with its huge current account deficit, by 2013 at the latest."...Independent