S&P reaffirms UK's AAA rating

Standard & Poor's (S&P) has reaffirmed its AAA credit rating for the UK and forecasts the government's net debt burden will peak next year.

The ratings agency also confirmed a stable outlook for the UK, as it expects the government to implement the bulk of its austerity measures. S&P is more optimistic on prospects for the UK than the other two major ratings agencies, Fitch and Moody's. They have placed the UK's rating on 'negative outlook', warning of a possible downgrade on concerns about growth prospects and public debt levels. In a statement, S&P said: "In our view, the UK has a wealthy, open, and diversified economy, supported by a well-established political system and macroeconomic policy framework, which can rea...