UK Most Likely G10 Country To Lose AAA Credit Rating
The pound fell in early trade Tuesday, after Fitch Ratings said that the UK was the most likely of the leading G10 nations to lose it's AAA sovereign credit rating.
As QE increases, the swelling budget deficit which is expected to average over 12% this year and next, means that the UK requires “the largest budget adjustment” of the countries it ranks AAA, said Fitch.
Another significant stimulus package would put the UK's rating at risk, they said.
September's budget deficit was the largest for that month since records began, up 70% on a year ago to GBP14.8 billion.
As QE increases, the swelling budget deficit which is expected to average over 12% this year and next, means that the UK requires “the largest budget adjustment” of the countries it ranks AAA, said Fitch.
Another significant stimulus package would put the UK's rating at risk, they said.
September's budget deficit was the largest for that month since records began, up 70% on a year ago to GBP14.8 billion.
