Moody's to review UK AAA rating

Moody’s Investors Service will review the United Kingdom’s AAA rating, as the country struggles to overcome its budget deficit amid slow economic growth and the eurozone crisis.

In a statement in its annual credit report on the UK, Moody’s said that government efforts to cut the debt are being negatively impacted by weaker economic prospects and the euro area sovereign debt crisis. 

However, "significant structural strengths" and a "very favourable debt structure" underpin the negative outlook. 

If growth prospects don't improve in the new year and if Chancellor George Osborne fails to stick by his deficit reduction plans, the UK will have lose its AAA credit rating. 

The warning came after the Bank of England cuts its growth forecast for 2013 to 1 percent.