Credit rating agency upgrades UK's economic outlook

A key credit rating agency has upgraded its opinion of the future prospects for the UK economy in light of its "robust and broadening" recovery.

Standard & Poor's (S&P) affirmed its top AAA rating on British sovereign debt and said it was switching its outlook from "negative" to "stable".

S&P upgraded the UK economy from 'negative' to 'stable' in light of its 'robust and broadening' recovery. Credit: Mike Egerton/PA Archive/Press Association Images

S&P has forecast growth of nearly 3% this year and 2.5% in 2015, saying it did not think fast-rising London house prices posed a risk to stability and that future rises would be "more contained".

But it warned that the rating would be at risk should Britain vote to leave the EU in the in/out referendum promised by David Cameron if the Conservative Party wins the next General Election.