UK on credit rating warning

Britain has retained its AAA credit rating from the Standard & Poor's credit rating agency, but has been warned it could be downgraded if it changes it plans to cut the deficit.

Live updates

Treasury bullish after S&P reaffirms AAA credit rating

The Government said a top credit rating agency's latest forecast on the UK economy showed the Coalition was on the right track with plans to cut the deficit.

Standard & Poor's said Britain's cherished AAA long-term credit rating will stay for now, but warned there was a chance of a downgrade.

The Treasury said:

In today's reaffirmation of our credit rating, Standard & Poor's stress the government's commitment to continued fiscal consolidation.

They specifically say that a downgrade could be prompted by a change in the government's 'willingness and ability to implement its ambitious fiscal strategy'.

This serves as a reminder that our country cannot afford to simply run away from our problems.

– Treasury statement

Britain's precarious AAA credit rating

The Standard and Poor's credit rating agency today confirmed the UK's AAA rating but warned that the outlook remained negative.

It means all three major agencies have now painted a bleak picture of Britain's economic outlook.

  • The Moody's rating agency downgraded the UK to Aa1 in February - the first time Britain had lost its AAA rating since 1978.
  • In March, the Fitch agency put the UK economy on negative watch, the first step to a credit rating downgrade.
  • S&P has now reportedly affirmed the UK's AAA status, but with the caveat that there is "at least a one-in-three chance" it could be downgraded.

Advertisement

Report: 'One-in-three chance' UK could lose AAA rating

The Standard & Poor's credit rating agency said Britain remained at risk of losing its AAA rating, in a statement reported by the International Business Times.

"The outlook remains negative, reflecting our view of at least a one-in-three chance that we could lower the ratings if the UK's economic and fiscal performances were to weaken beyond our current expectations," S&P reportedly said.

Back to top