S&P keeps UK at AAA, warns of future rating risk

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Associated Press

Posted on April 5, 2013 at 11:00 AM

Updated Friday, Apr 5 at 11:04 AM

LONDON (AP) — Standard & Poor's rating agency says Britain's cherished AAA long-term credit rating will stay for now — but warned there was still a chance of a downgrade if the economy weakens.

The move comes after fellow ratings agency Moody's downgraded its U.K.'s triple-A credit rating for the UK one notch to AA1 in February. Moody's said that sluggish growth and rising debt were weakening the British economy's outlook.

S&P said Friday that while the U.K. government is "committed to implementing its fiscal program" and can respond quickly to economic challenges, the agency would leave the rating on a negative outlook because it views a one-in-three chance that it could cut ratings over the next 2 years if the U.K.'s economy weakens beyond current expectations.

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