S&P affirms UK's AAA rating

clock

Britain had its AAA credit rating affirmed by Standard & Poor's yesterday, but the ratings agency retained its negative outlook over continued deficit concerns.

Despite Chancellor Alistair Darling's pledge to cut the deficit by upwards of 50% by 2014, S&P says the Government has not been specific enough on the reduction. "In the absence of a strong fiscal consolidation plan, the UK's net general government debt burden may approach a level incompatible with a AAA rating," S&P says. "We expect to review the long-term rating and outlook again once medium-term fiscal policy becomes clearer following the 2010 parliamentary elections." UK Government bonds rallied yesterday, with the 10-year gilt yield falling 5 basis points to 3.98%.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read