src- Yahoo News
Standard & Poor's has warned that debt could rise to 100% of output by 2013, which could lead to the UK losing its coveted 'AAA' status.
S&P has held the rating for the moment, but lowered its outlook on the UK to "negative" because of worries over the fast-deteriorating public finances and how long it could take to repair the hole.
Analyst David Beers said: "Our outlook revision on the UK reflects that, even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium term."
The warning came as official figures showed net borrowing surging to a worse-than-expected £8.5 billion in April - over four times higher than last year - as tax receipts dive and spending rises. Chancellor Alistair Darling expects to borrow a record £175 billion this year, with debt as a share of GDP peaking at 79% in 2013/14.
When S&P last looked at its ratings in January it assumed the debt burden would rise from about 49% of GDP in 2008 to 83% in 2013.