Elevate your local knowledge

Sign up for the iNFOnews newsletter today!

Select Region

Selecting your primary region ensures you get the stories that matter to you first.

Fitch downgrades Britain’s bond rating from AAA to reflect weaker economic and fiscal outlook

LONDON – The Fitch Credit ratings agency has downgraded Britain’s government bond rating one notch from the top AAA to AA+, citing a weaker economic and fiscal outlook.

Fitch said Friday that the downgrade came because the country lacked “the fiscal space to absorb further adverse economic and financial shocks” that would be consisted with a AAA rating.

The British government has been pursuing an austerity program of spending cuts and tax increases designed to reduce the nation’s hefty deficit. But the economy’s growth has been flat-lining.

Fitch estimated that the U.K. economy was not expected to reach its 2007 level of real GDP until 2014, underscoring the weakness of the recovery.

The Moody’s Investors Service, another rating agency, in February also stripped Britain of its AAA grade.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles