Fitch downgrades UK to AA+

Ratings agency Fitch has downgraded the UK to AA+ from AAA, citing a weaker economic and fiscal outlook.

Fitch forecasts that general government gross debt will peak at 101% of GDP in 2015-2016 (equivalent to 86% of GDP for public sector net debt), and will only gradually decline from 2017-2018. The agency had previously warned that failure to stabilise debt below 100% of GDP and place it on a firm downward path would likely trigger a rating downgrade. "Despite the UK's strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no...