S&P affirms Britain’s debt ratings at AA

WASHINGTON (AFP) – S&P Global Ratings on Friday held Britain’s debt rating steady at AA with a stable outlook noting steps London has taken to mitigate the impact of the
Covid-19 pandemic.

But the ratings agency cited “uncertainty regarding the United Kingdom’s (UK) future relationship with the European Union (EU)”.

“In our opinion, this will have important implications for the UK economy, the country’s ability to attract inflows of capital and labour over time, and its public and external finances,” S&P said in a statement.

“The agency expects the British economy to contract by 9.7 next year and we do not expect the economy to recover to its 2019 level until 2022.”

Moody’s last week cut Britain’s debt grade a notch to Aa3, citing a weakening economy “exacerbated” by Brexit.