Moody's Investors Service said the UK, France, Germany and the US face "an increasingly delicate balancing act" as they strive to lower government debt through spending cuts. Moody's said that although the countries are not in an immediate risk of having their Aaa credit ratings downgraded, they need to get their public finances under control or the ratings could be jeopardised. The rating agency said that "on balance, we believe that the ratings of all large Aaa governments remain well positioned -- although their 'distance-to-downgrade' has in all cases substantially diminished".

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