LGIM's Hodges: UK to lose AAA-rating next year

Star bond fund manager Richard Hodges has warned the UK is likely to lose its coveted AAA-rating next year as the ongoing crisis takes its toll.

Hodges, (pictured), manager of the top-performing L&G Dynamic Bond trust, said he expects the UK will be downgraded to AA+ in 2013, with a host of other 'safe havens' also losing their AAA status. The manager said only Germany will maintain its AAA-rating from the credit rating agencies, as it is the only region with any growth. "Under the agencies' definitions, it is less and less likely the UK will maintain its AAA-rating, and I expect it to fall to AA+ next year," he said. "The only place in the world that will keep its AAA is Germany, because it will have some growth." Phil ...