CREDIT RATINGS AGENCY Fitch has downgraded the United Kingdom’s outlook from “stable” to “negative”.
The nation has held onto its AAA rating but has been warned that it faces a 1-in-2 chance of losing its top rating over the next few years if the government moves to ease cut-backs, Reuters reports.
British Treasury minister Danny Alexander said that Fitch’s announcement was “a salutary reminder as to why Britain needs to deal with the enormous debts and deficit that we inherited, (and) why we have got to stick to those plans.”
Referring to the change of outlook, Fitch said that the decision was taken in consideration of ongoing financial problems in the eurozone.
In a statement, the agency noted: “The easing of financial market tensions in the eurozone in recent months has diminished the risks to the UK, but in Fitch’s opinion, the crisis is not resolved and could once more intensify.”
Fitch asserted that any worsening of the eurozone crisis may reduce the UK’s government ability to meet its deficit and debt reduction targets, reports the Guardian.