Fitch: UK on course to keep triple-A rating
LONDON (Reuters) - Britain’s prized triple-A credit rating will likely stay in place even if there is some slippage in the government’s growth forecasts providing its debt reduction plans remain on track, Fitch credit ratings agency said yesterday.Britain’s economy has stalled over the past 12 months with forecasts for next year repeatedly cut, putting pressure on the government’s plans to largely eliminate a budget deficit which had totalled more than 11 percent of GDP by 2015.“Given the growth outlook for the UK, or the lack of growth outlook for the UK, there’s clearly going to be some slippage I think against some of the budgetary targets the government has set itself,” David Riley, Fitch’s head of global sovereign ratings, told Sky News.“I think so long as they keep broadly on track then I think it will keep confidence both in its rating, at least from Fitch, as well as confidence from investors.”Opposition parties have criticised the austerity measures introduced to cut the deficit, arguing they had damaged confidence and stifled growth.However, Riley said the government should not be deterred from its plans.“The UK does have high and rising public debt, has a large budget deficit, much larger than that of Italy for example, and does actually need to demonstrate that it’s bringing that under control. It has been doing that,” he said.“It think it’s sensible and the market will view it as sensible to allow some leeway in that. But the end destination has to be to bring the deficit under control and stabilise UK debt.”