Fitch sees no impact on AAA rating from Budget proposals

FITCH Ratings said yesterday George Osborne’s Budget proposals show commitment to the coalition’s existing deficit reduction strategy and do not impact its AAA credit rating.

“As expected, the announcement did not contain unfunded tax and spending measures while the updated economic and fiscal forecasts are marginally better than forecast in the Autumn Statement,” Fitch said.

“However, the scale of the fiscal challenge remains large relative to its ‘AAA’ peers and the chancellor confirmed that austerity will have to extend beyond the term of the current parliament if the government’s fiscal targets are to be met,” the statement added.

Britain holds the top level credit rating from Fitch, Standard & Poor’s and Moody’s Investors Service. Fitch and Moody’s have negative outlooks on Britain’s credit rating while S&P has the country at stable.