S&P upgrades British ratings outlook, cites spending cuts

26th October 2010, Comments 0 comments

Standard & Poor's maintained Britain's top AAA credit rating on Tuesday and upgraded the outlook to stable from negative, citing the impact of last week's brutal public spending cuts.

"In our opinion, the decisions reached by the UK coalition government in its 2010 spending review reduce risks to the government's implementation of its June 2010 fiscal consolidation program," the agency said in a statement.

"Moreover, the coalition parties have shown a high degree of cohesion in putting the UK's public finances onto what we view to be a more sustainable footing.

"We have accordingly revised the outlook on the United Kingdom to stable from negative. We have also affirmed the 'AAA/A-1+' sovereign credit ratings on the United Kingdom."

© 2010 AFP

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