The FTSE 100 has lost ground in trading today (January 16th), after one key credit agency warned the UK could lose its top rating.
Senior figure at Fitch David Riley stated the organisation is not pleased that the chancellor said in his Autumn Statement that the Treasury looks set to miss its 2015-16 target to start reducing the level of net debt and that this action has weakened its "credibility".
The agency has had the UK's AAA rating on a "negative outlook" since March 2012, which means it is likely it could be revised lower.
Britain's net sovereign debt was equal to 68 per cent of its annual economic output at the end of last year and Mr Riley warned that if this rose to 100 per cent it would not be "consistent with the UK retaining a AAA rating".
At 14:18 GMT, the FTSE 100 depreciated by 0.5 per cent – or 33.8 points – to an index value of 6083.4 points.
Find spread betting strategies for the FTSE 100 at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.