S&P reaffirms UK triple-A rating

Standard & Poor's building in New York Standard & Poor's is one of the big three credit rating agencies

Related Stories

Credit rating agency Standard & Poor's has reaffirmed its triple-A rating for the UK, but warned of the continuing negative outlook for the economy.

S&P said it may downgrade the UK from the highest rating in the future if economic conditions worsened.

In February, Moody's became the first rating agency to downgrade the UK from triple-A status.

The Treasury welcomed the S&P decision, saying it supported the government's efforts to cut the budget deficit.

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

"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."

February's downgrade by Moody's, another of the big three rating agencies, was seen as a political embarrassment to the government, which had promised to protect the UK's credit rating when it was elected in 2010.

S&P warned that it may still follow suit if the government's current plans veer off course.

"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," it said.

It said it now expects the UK economy to grow by an average of 1.6% a year over the next three years - lower than the official forecast given by the Office for Budget Responsibility.

More on This Story

Related Stories

More Business stories

RSS

Features

  • Prostitute in red light district in Seoul, South KoreaSex for soldiers

    Did Korea encourage prostitutes near US military bases?


  • LuckyDumped

    Why times are bad for India's professional rubbish collectors


  • Walmart employees and supporters block off a major intersection near the Walton Family Foundation to stage a protest calling for $15 an hour and consistent full-time work in downtown Washington October 16, 2014. Black mark

    Wal-Mart workers revolt against the annual shopping bonanza


  • Child welfare worker with rescued babyTaboo babies

    Saving Kenya's children born of incest from a death sentence


From BBC Capital

Programmes

  • All-inclusive holidaysThe Travel Show Watch

    With all-inclusive holidays seeing a resurgence are local trades missing out to big resorts?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.