Worldwide Financial – “Smart Trade Group” – (Fitch Ratings Warns UK)…

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‘Smart Trade Group’: Fitch joins Moody’s and Standard & Poor’s warning Britain could lose its AAA rating.

New York, USA, 3-14-2010- “Smart Trade Group” analysts are reportedly in “complete agreement” with a statement from Fitch Ratings, one of the three main credit rating agencies, that Britain faces losing its coveted AAA sovereign debt rating if it doesn’t map out austerity measures to reduce its ballooning budget deficit.

The Asia-based wealth manager believes that the UK is likely to be the last of the major economies to rein in its unprecedented measures to tackle the global slowdown.

“Smart Trade Group” maintains that the loss of the AAA rating on its sovereign debt would make it harder for the UK to borrow money from investors to meet its obligations.

Several countries, including Greece and Portugal, have announced austerity measures aimed at reducing their deficits down to 3% of GDP – a tall order given that Greece’s currently stands at 12.7% - the highest of any EU member state. Britain’s is expected to exceed 13% of GDP by the end of 2010 unless the current or next government sets out its plans.

“Smart Trade Group” say that sterling will continue to come under pressure in the foreign exchange markets as investors decide to hold other currencies in preference to the pound which is seen as the riskiest of the main currencies at the moment.