Third agency now ‘negative’ about UK’s credit rating
All three main international credit agencies have now put the UK on a “negative outlook”, indicating that the country could lose its AAA rating next year.
Standard & Poor’s said last night there was a one-in-three chance it could lower Britain’s rating within the next two years, if economic conditions weaken. S&P also revised its outlook on the Bank of England’s AAA rating to negative.
Its move follows that of fellow agencies Moody’s and Fitch – which have both revised the UK to negative.
S&P said it expected government debt, as a percentage of gross domestic product (GDP), to continue to rise in 2015 before declining again, with future employment or growth shocks putting further pressure on government finances.
It said it could lower the UK’s rating “if fiscal performance weakens beyond our current expectations”.
A country’s credit rating can influence its borrowing costs, as some investors are restricted from lending to those not on a high rating. However the Government believes the effects of a downgrade on borrowing costs would be limited.
Revealed: Devastating impact of 'bedroom tax' sees huge leap in demand for emergency hardship handouts for tenants
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
Revealed: Eerie new images show forgotten French apartment that was abandoned at the outbreak of World War II and left untouched for 70 years
Chloe Johnson death: Family of five-year-old British girl who died in a pool at in Egypt's Sharm el-Sheikh resort 'angry' that more wasn't done to save her
- 1 Stoke City investigate 'religious abuse' after 'pig's head is found in Kenwyne Jones' locker'
- 2 Gove’s lesson: spare the comma, spoil the child
- 3 Ukip captures Labour fortress in South Yorkshire by-election
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
£30000 - £40000 per annum + BENS: Progressive Recruitment: Drupal Developer A ...
£45000 - £50000 per annum + bens: Progressive Recruitment: C# WEB DEVELOPER Le...
£240 - £260 per day: Progressive Recruitment: WPF Developer (C#, VB.Net) North...
£85 - £120 per day: Randstad Education Cheshire: KS2 teacher needed to do PPA ...