Further to my post almost exactly a month ago regarding the UK's "perfect" AAA credit rating, Standard & Poor has now put HMG on "negative outlook". We are now AAA/A-1+. Negative outlook is a step down from "stable" but not as bad as "negative watch".
So there's the path if the government doesn't pull its finger out: negative watch and then we lose the triple-A.
Needless to say sterling sagged and CDSs spread on the news. (CDS = Credit Default Swap, effectively the cost of insuring our debt.)
Like I said in a previous post; really I'm just documenting the decline here.