The ratings agency Moody's on Friday lowered Britain's top AAA credit rating to AA1, citing a weak economy and rising debt, dpa reported.
Since the beginning of the financial crisis in 2008 Britain has seen its debt mount to an estimated 86 per cent of its gross domestic product.
Prime Minister David Cameron, who took office in 2010, has tried to get the country's debt under control by drastically cutting the budget, but thus far it has not yielded results. The budget deficit is expected to grow by nearly 7 per cent this year, according to experts.
The pound also has lost value in the last several months against the euro and the dollar, and Britain's central bank recently admitted that inflation would not be 2 per cent as projected, rather more like 3 per cent.