The UK is (still) AAA-OK

Ratings agency Standard & Poor’s has confirmed the UK’s AAA sovereign debt credit rating.

Citing a diversified economy and flexible fiscal monetary policy, Standard & Poor’s believe that the UK economy is capable of getting through a global economic slowdown.

This is good news for the UK economy and will be welcomed by our political leaders. It comes a little more than a month after Standard & Poor’s cut the credit rating for the US, from AAA to AA.

The government will particularly appreciate the apparent endorsement of public debt reduction measures, with Standard & Poor’s saying they would re-evaluate the credit rating if the government weakened its resolve in this respect.

The AAA rating for UK long-term debt comes with a “stable” outlook.

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