Fitch lowers outlook for UK rating from 'stable' to 'negative' in light of Mini Budget

Maintains ‘AA-’ rating

Valeria Martinez
clock • 1 min read

Ratings agency Fitch has lowered the UK’s government debt rating from “stable” to “negative” in wake of the Mini Budget, but maintained the UK's "AA-" investment grade.

The agency cited the "large and unfunded" fiscal package announced as part of the new government's 'Growth Plan' as a main driver for its decision, which it said could lead to a significant increase in fiscal deficits over the medium term. Chancellor scraps plans to remove 45% income tax rate for high earners According to Fitch, the lack of independent budget forecasts, as well as an apparent clash with the Bank of England's efforts to fight inflation had "negatively impacted financial markets' confidence and the credibility of the policy framework, a key long-standing rating strength...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

UK grocery inflation drops to lowest rate since October 2021
UK

UK grocery inflation drops to lowest rate since October 2021

Down 0.3% from May

clock 18 June 2024 • 1 min read
New Capital's Oisin O'Leary: Why we are holding fire on UK opportunities until we see rates cut
UK

New Capital's Oisin O'Leary: Why we are holding fire on UK opportunities until we see rates cut

'Cusp of an interest rate regime change'

Oisin O’Leary
clock 18 June 2024 • 3 min read
Reform UK pledges to tackle BoE interest payments to banks on QE reserves
UK

Reform UK pledges to tackle BoE interest payments to banks on QE reserves

'A move that is sure to stir the political pot'

clock 17 June 2024 • 2 min read
Trustpilot