World

S&P raises outlook on UK to ‘stable’

PTI San Francisco | Updated on March 12, 2018

Standard & Poor’s is brightening its outlook for the United Kingdom amid signs that the country’s economy will continue to grow at a healthy rate through next year.

The reassessment issued late yesterday recast S&P’s view on the UK’s credit rating to “stable” from “negative.” The influential agency also reaffirmed its top-notch “AAA” credit rating.

But S&P warned that the rating could be imperilled if Britain leaves the European Union, a move the country’s Conservative Party has pledged to put to a referendum in 2017 if it wins the next general election.

Defecting from the European Union would be a significant blow because the UK has considerable trade ties to the region and could lose inbound investments, S&P said.

For now, S&P sees mostly positive signs. The report foresees the UK economy expanding by nearly 3 per cent this year and 2.5 per cent next year.

S&P is optimistic about worker productivity and wages increasing. The agency is also encouraged with the progress being made on the UK’s government budget deficits.

After adding it all up, S&P concluded that there is only a one-in-three chance of a credit downgrade during the next two years.

Published on June 14, 2014

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

null
This article is closed for comments.
Please Email the Editor

You May Also Like