S&P revises UK outlook from negative to stable

The UK's credit rating has been revised from negative to stable by S&P, further consolidating its ‘AAA' status and boosting the coalition government's economic plans.

The ratings agency reaffirmed the UK's ‘AAA' long-term sovereign credit rating and 'A-1+' short-term sovereign credit rating. Meanwhile, the country's transfer and convertibility assessment also remains 'AAA'. S&P attributed the improved outlook to demand for long-dated gilts by domestic institutional investors and from non-residents for sterling-denominated UK government debt. Trevor Cullinan, S&P's credit analyst, says: "The ratings on the UK reflect our view of the country's wealthy and diversified economy, fiscal and monetary policy flexibility, and relatively adaptable product...