MOODY’S Investors Service has downgraded Britain’s Government bond rating (credit rating) one notch from AAA to AA1, due to sluggish growth and rising debt affecting the medium term outlook.

This country is now at about the same level as the rest of Europe, except Germany which, like Canada, is still graded AAA.

The European area has been in recession and is expected to remain so for the rest of 2013. Britain’s economy is bound to be affected by the European markets and had managed retain it credit rating despite until recently. European countries included in Moody’s rating register are now similar to this country.

All of these are applying austerity measures to cope with the same problems. Time will tell if all of these are wrong.

J Beisly, Osprey Close, York.