Fitch may strip UK of AAA rating

26 March 2013

Britain is in danger of facing another credit rating downgrade in the near future as it continues to battle against the possibility of slipping into a triple-dip recession.

Leading agency Fitch has announced it has placed the UK's long-term sovereign rating of AAA on negative watch due to ongoing concerns about the health and resilience of the country's economic recovery.

Last month, Britain was stripped of its top-notch score by one of the major ratings agencies for the first time when Moody's cut their rating from AAA to AA1 and it seems that Fitch is now ready to follow suit.

Fitch explained this decision has been made in reflection of chancellor George Osborne revealing in his Budget last week (20 March) that the official forecast for UK growth in 2013 had been halved from 1.2 per cent to 0.6 per cent.

"The persistently weak performance of UK growth, in part due to European growth, has increased uncertainty around the UK's potential output and longer-term trend rate of growth," the body noted.

By Gary Cooper

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