Posted by: youngragingbull | April 20, 2013

Fitch cuts U.K.’s AAA rating to AA+

Fitch Ratings has downgraded the U.K.’s foreign and local currency issuer default rating to AA+ from AAA on Friday, saying it reflects the country’s weaker economic and fiscal outlook.

“Higher than previously projected budget deficits and debt primarily reflects the weak growth performance of the U.K. economy in recent years, partly due to headwinds of private and public sector deleveraging and the eurozone crisis,” the agency said in a release announcing the downgrade.

Fitch revised its forecast for the country’s economic growth to 0.8% in 2013 and 1.8% in 2014, down from the 1.5% and 2.0%, respectively, it forecast in September 2012.

The global ratings agency said the country’s strong credit profile and the fact that it has a “high-income, diversified and flexible economy” and a stable political and social environment is what prevented it from being downgraded more than one notch.

The move follows a similar downgrade by Moody’s Investors Services earlier this year from AAA to AA1.

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