U.K. Debt Downgraded

China's Dagong Global Credit Rating Company has downgraded the UK's local and foreign currency sovereign credit rating to A+ from AA-, and slaped it with a "negative" outlook for "its solvency".

The reasons: "the deteriorating debt repayment capability of the UK and the difficulty in improving its sovereign credit level in a moderately long term in the future," as well as the uncertainties due to the Bank of England's future monetary policy coupled with the impact of debt of  European countries and its effects on the British financial system - that are "likely to further worsen the government's fiscal status".

The agency also says that the expected anemic growth of 1.3% of British economy "directly curbs the improvement of the national economic status."