When one is expected to go down for missing a comma in their NRSRO application, one at least should go down swinging. Sure enough, Egan-Jones, the only rating agency with any credibility left, is at it again, this time cutting the big momma itself - the UK - from AA to AA-.

6/4/2012: United Kingdom: EJR lowered AA to AA- (Neg.) Projected A+ (S&P: AAA) (6152Z LN) Synopsis: On the balance of payment side, imports have exceeded exports by an average of approximately 500B pounds annually over the past several years. The major problems for the UK is that Europe's banking crisis does not appear to be abating as evidenced by the miserable results of most EU banks. On the fiscal side, the deficit to GDP has declined over the past three years from 11.5% to 8.3%, which is a respectable decline, but the bulk of the reduction was the result of increased taxes since GDP growth was weak. The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector. Unfortunately, we expect that the UK's debt/GDP will continue to rise and the country will remain pressed.

Full report here.

This chart may have something to do Egan-Jones decision: