UK to keep AAA rating, says Standard and Poor's

  • The UK is to retain its top AAA credit rating, according to agency Standard & Poor's (S&P).

    It expects British economic growth to improve in the second half of 2012 despite heading into recession earlier in the year.

    The rating reflects a stable outlook and S&P said it expected Prime Minister David Cameron’s government to keep budgets tight.

    "In our view, monetary flexibility remains a key credit strength owing to the British pound sterling's role as a global reserve currency,” said S&P in a statement.

    "The stable outlook reflects our expectation that the UK government will implement the bulk of its fiscal consolidation programme and that the economy should recover in the remainder of 2012 and strengthen thereafter."

    Chancellor George Osborne said the move signalled global confidence in Britain’s ability to deal with its debt.