UK downgraded by credit ratings agency Fitch

Fitch Ratings has downgraded the UKs long-term foreign and local currency Issuer Default Ratings (IDR) to AA+ from AAA.

Fitch Ratings has downgraded the UKs long-term foreign and local currency Issuer Default Ratings (IDR) to AA+ from AAA.

The downgrade reflects a “weaker economic and fiscal outlook and hence the upward revision to Fitch’s medium-term projections for UK budget deficits and government debt,” Fitch’s website says.

“Despite the UK’s strong fiscal financing flexibility, which is¬†underpinned by its currency’s reserve status, and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a ‘AAA’ rating.”

Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.