Coming just after the French and UK war of words as to who is in the worst economic condition, the rating agency Moody's, one of the top three, has said that UK's deteriorating growth and public finances, could cause a downgrade of the prized AAA rating in it's annual report on the UK.

This could result in higher borrowing costs but although the UK is not imune from the fall out in any Euro break up, we are still seen as a safer haven than most Eurozone countries, which is reflected in the low bond rates offered. The higher the risk, the more a country will have to pay when attracting funds through bond issuances.

Rating agencies give Investors guidelines as to the economic strength of a country, bank or company but are frequently looked on as causing problems with ill timed downgradings or warnings at key times. They see it as just doing their job.