Fitch affirms Britain’s AAA credit rating

PARIS: Fitch Ratings yesterday maintained Britain's "AAA" credit rating with a negative outlook, warning that weak
economic growth was increasing the likelihood of a
downgrade.
Fitch said "weaker than expected growth and fiscal outturns in 2012 have increased pressure on the UK's 'AAA' rating".
With Fitch estimating that Britain's debt in 2015-2016 may approach 100 percent of gross domestic product (GDP), the limit for a top "AAA" rating "the likelihood of a downgrade has therefore increased."
It said the negative outlook reflects Britain's "very limited fiscal space, at the 'AAA' level, to absorb further adverse economic shocks in light of the UK's elevated debt levels and uncertain growth outlook."
Fitch had put Britain's rating on negative outlook, or subject to downgrade, in March.
Given the uncertainties of the fiscal and economic projections Fitch said it did not expect to resolve its negative outlook on Britain's rating until 2014.
However it warned a downgrade would be likely if Britain's medium-term growth outlook worsens, there were indications that government debt would exceed 100 percent of GDP, or an easing of fiscal policy that pushes back a reduction in debt levels.