On May 21, Standard & Poor's Ratings Services revised its outlook on the United Kingdom to negative from stable. At the same time, the AAA long-term and A-1+ short-term sovereign credit ratings were affirmed.This fiscal disaster is due to many years of socialism, including nationalized health care. We now have nationalized banks, nationalized auto companies, nationalized insurance companies and soon will likely have nationalized California. And all of this is met gleefully by the MSM and blamed on George Bush.
Rating outlooks assess the potential direction of a rating, typically over a period of up to two years. An outlook does not necessarily precede a rating change.
We have revised the outlook on Britain to negative because of our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100% of gross domestic product and remain near that level in the medium term.
This is going to be a very, very bumpy ride.