Rising government debt threatens UK's AAA rating - Fitch

Ratings agency Fitch has warned the UK's AAA credit rating is under increasing pressure because of growing government debt, which could hit 100% of GDP this year, and the continuing eurozone crisis.

Fitch has affirmed the UK’s coveted credit rating for now, but has maintained the country on a ‘negative outlook’ and expects it will remain so until at least 2014. The nation’s spiraling budget deficit is partly to blame for this outlook, Fitch said. “The agency believes the UK's high-income, flexible and diversified economy, robust institutions, and high degree of political and social stability support the 'AAA' rating. However, weaker than expected growth and fiscal outturns in 2012 have increased pressure on the UK rating, resulting in a negative outlook since March 2012. “W...