S&P reaffirms UK AAA but warns again on outlook

clock •

Ratings agency Standard & Poor's has retained an AAA sovereign credit rating for the UK but says there is still a one in three chance of a downgrade next year.

S&P said its expectations for average annual real GDP growth of over 2% between 2013-2016 are "notably higher" than when it last affirmed the UK's AAA rating in April. It also now expects public sector borrowing to drop by a further 1% of GDP in each of the next five years, meaning net general government debt will peak one year earlier in 2015 - at a lower level (89% of GDP) than previously assumed. However, the ratings agency has also retained a negative outlook in case its forecasts prove too optimistic. "The negative outlook reflects our view of at least a one-in-three possibility tha...

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

Fahad Hassan: When good news becomes an inflation problem

Fahad Hassan: When good news becomes an inflation problem

'Markets have been adjusting to the risks through valuations all year'

Fahad Hassan
clock 29 September 2026 • 6 min read
Healey promises 'new age of industrialisation' ahead of Budget

Healey promises 'new age of industrialisation' ahead of Budget

Keeps quiet on personal taxation, pensions or savings at Labour’s conference

Isabel Baxter
clock 28 September 2026 • 2 min read
MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

Treasury Committee report

Jack Roach
clock 23 September 2026 • 2 min read