S&P Puts UK in AAA Credit Rating

The credit ratings firm Standard and Poor’s has placed the United Kingdom economy in AAA credit rating once again which an indicator that the country is “wealthy, open and diversified.” S&P was able to say that the country has a “stable outlook” due to the government putting more effort into its austerity measures. However, other credit ratings agencies placed the UK’s economy at a “negative outlook”. Fitch and Moody’s have issued warnings that the country’s ratings may be downgraded in the future if the government cannot do much about the problems about economic growth as well as public debt. In the official statement of Standard and Poor’s: “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 react quickly to economic challenges. We expect economic policy to focus on closing the fiscal gap, and we forecast the government's net debt burden to peak in 2013 at about 87% of GDP.”