One of the world’s leading credit reference agencies has given the UK a glowing report, suggesting that the long-term outlook of the national finances was now stable as a consequence of the government’s public sector cutbacks and offering an impartial voice of support for the economic policies of the Conservative/Liberal Democrat coalition government.

Credit referencing agency Moody’s, which rates organizations and governments for creditworthiness, spoke to the UK government’s determination to rebuild the national balance sheet, which it asserts was an essential step in restoring the UK’s ability to repay its national debt.

The report highlighted the significant damage caused to the UK national finances as a result of the recent recession, but lauded the UK’s ability as a flexible, reasonably balanced economy to meet its future obligations.

The Moody’s report also specifically references the steps taken by the UK government to cut back on public sector spending, giving a resounding vote of support for the current widening austerity measures put in place by the government and helping cement the UK’s low interest rates for national debt.

The report means the UK’s AAA credit rating is still secure, as it has been for over 30 years, which will keep limits on UK debt interest repayments and help the UK maintain its credibility with the global financial markets.

The message comes in spite of the UK’s stinted economic growth as the economy lurches out of recession, and flies in the face of harsh trade union criticism of government economic policy.