Moody's says UK's top credit rating looks safe

LONDON: Moody's Investors Service says that Britain's top credit rating is safe because of steps the government is taking to restore economic strength and tackle the deficit.

The rating agency's announcement on Monday said the outlook for the British economy is challenging but manageable.

Moody's says it believes Britain "has the wherewithal and ability to meet these challenges whilst maintaining its Aaa rating."

Britain has had an Aaa rating on long-term debt continuously since 1978.

Moody's says that U.K. debt is well structured and the economy flexible and strong enough to grow modestly.