The UK has lost its triple-A credit rating for the first time since the 1970s.
What is a credit rating?
Very simply its the ability to pay back what one borrows. Its the reason why you see signs in pubs saying " Please don't ask for credit as a punch in the mouth sometimes offends"
Why has the UK lost its AAA rating?
Most politicians have trouble tracking their own expenses, why should we be amazed that they lost an AAA rating?
Does the downgrade matter?
If your poor then yes the bastards will find a way to make you suffer more. If your rich who gives a toss open another bottle of champagne and blame it on the previous government.
What does it mean for the government?
A few more face saving arguments in parliament while (yes you've guessed it) they blame the opposition. Then its back to spin the bottle trying to decide if they really should do something which would actually make a difference. Decide to do nothing as they can always blame the previous Government.
So will the government now change its economic policy?
Probably not, they will just blunder along safe in the knowledge that they can blame the previous government, just like all governments in power do.
See this link for the real answers