S&P warns Britain over credit rating
London, April 6, 2013
Standard & Poor's has warned Britain that worse-than-expected economic growth or slow progress in fixing its budget deficit could cost the country its top-notch credit rating.
S&P affirmed the UK's AAA sovereign credit rating but kept the outlook as negative.
"The outlook remains negative, reflecting our view of at least a one-in-three chance that we could lower the ratings if the UK's economic and fiscal performances were to weaken beyond our current expectations," S&P said.
Britain lost its AAA rating from Moody's in February, an embarrassment for the Conservative-led government which had promised to protect the country's credit rating when it took power in 2010.
But slower-than-expected economic growth since then has meant the government is behind on its programme to return the country to fiscal health.
S&P said yesterday it expected the British economy to grow by an average of 1.6 per cent a year between 2013 and 2016, slightly slower than forecasts last month issued by the country's independent budget watchdog.
Fitch said in March it was likely to lower its AAA rating on Britain before the end of this month.-Reuters
More INTERNATIONAL NEWS Stories
- Ukraine PM says he will go to US to discuss crisis
- Syrian journalist killed covering fighting
- Malaysian jet may have turned back before vanishing
- No sign of missing plane; Malaysia probes false passports
- Two Europeans not on board 'missing' Malaysian jet
- China draws red line on North Korea
- Saudi sentences three to death for 2003 bombing
- First bitcoin machine opens in UK
- US sanctions will boomerang, warns Russia
- China plans $50bn bank to fund projects
- Sony to sell Tokyo 'birthplace'
- Obama orders sanctions over Russian moves
- Crimea parliament votes to join Russia
- Arab League to be revamped
- 'Upskirting' is legal: Massachusetts court
- Singapore probes 'unnatural' death of bitcoin trader
- Onus on world powers for Syria war crimes: UN
- US, Russia set for talks on Ukraine crisis
- Brent oil drops below $109
- Services outshine manufacturing, pushing up jobs
- Bitcoin bank shut down after hacker attack
- India to kick off world's biggest poll on April 7
- China signals focus on reforms
- Hundreds ready for bitcoin exchange class action
- Space taxi, Jupiter mission in Obama budget
- Putin: Use of force last resort in Ukraine
- Powers to boost Lebanese military, economy
- Egypt bans Hamas activities in Egypt
- Putin ends army exercise, markets rally
- Russia has violated international law: Obama