Britain says must stick with austerity after Moody's changes

LONDON (Reuters) - Britain said on Monday it must keep its promise to slash its large budget deficit after the outlook for its AAA credit rating was cut to negative by Moody's ratings agency.

"This is proof that, in the current global situation, Britain cannot waver from dealing with its debts," Chancellor George Osborne said.

"Moody's are explicit that it is only the government's 'necessary fiscal consolidation' that is stopping an immediate downgrade, which would happen if there were any 'reduced political commitment to fiscal consolidation including discretionary loosening'. This is a reality check for anyone who thinks Britain can duck confronting its debts."

The government in Britain has come under increasing pressure to soften its austerity measures to give a stalling economy room to breathe.

(Reporting by Matt Falloon)