Fitch downgrades UK to AA+

Ratings agency Fitch has downgraded the UK from AAA to AA+, outlook stable. The weak economic and fiscal outlook for the UK was cited.

Fitch now forecasts that general government gross debt (GGGD) will peak at 101% of GDP in 2015-16 (equivalent to 86% of GDP for public sector net debt, PSND) and will only gradually decline from 2017-18. This compares with Fitch's previous projection for GGGD peaking at 97% and declining from 2016-17 and the 'AAA' median of around 50%.