Risk to Britain's AAA debt rating declining, says Fitch

City A.M. Reporter
Ratings agency Fitch reaffirmed the stable outlook on Britain's AAA sovereign debt rating and said risks were declining due to budget consolidation and a healthier banking sector.

"The legacy of the global financial crisis continues to weigh on the UK economic and fiscal outlook," said Maria Malas-Mroueh, Director in Fitch's Sovereign team.

"Nonetheless, the strong budgetary consolidation effort and declining fiscal risks arising from the UK financial sector support the Stable Outlook on the UK's 'AAA' ratings."

Fitch said the government's deficit reduction plan was credible and it expected the March 23 budget to reaffirm the government's commitment to fiscal tightening.