UK banks face possible ratings downgrade - Moody's

UK banks risk having their credit ratings downgraded because of the poor state of the country's public finances, warns ratings agency Moody's.

In news that will not be welcomed by the incoming Government, Moody's says the UK's bulging deficit - and the corresponding need to reduce it through tax rises and spending cuts - is threatening the credit rating of its banks. The warning comes on the back of the European Commission's prediction yesterday that the UK's deficit will hit 12% and be the highest in the EU, including Greece, by the end of the year. Fears UK institutions will come under pressure were heightened as European banks, including Societe Generale and BNP Paribas, revealed hefty exposure to the Greek crisis. Ho...