The credit rating agency, “Standard & Poor’s” (S&P), raised its estimate of Britain’s long-term debt prospects from “negative” to “stable”, confirming that it is not considering downgrading it in the coming months and maintaining its sovereign debt rating (AA / A). -1).
The stable outlook “reflects the UK’s recent stronger economic performance and greater containment of the budget deficit over the next two years,” the agency said in a statement.
In particular, she stressed that “the government’s political measures on the supply front and the improvement of relations with the European Union can support growth prospects in the medium term, despite the current structural constraints.”
However, the agency warned of “risks arising from the UK’s fiscal position, which continues to face pressures with rising net public debt in the context of higher interest rates and potential spending pressures in light of the upcoming elections (scheduled for January 2025 at the latest).”
S&P warns that it may downgrade the UK if its budget performance is weaker than expected, “reducing the government’s room to maneuver to respond to future economic shocks.”
Conversely, it said, the rating could be raised if it turns out that the fiscal performance is better than expected “making the net public debt on a steady downward trajectory.”
