Late Friday, the US-based Fitch Ratings affirmed the UK’s sovereign credit rating at ‘AA-‘ with maintaining a negative Outlook.
“The Negative Outlook reflects the impact the coronavirus pandemic is having on the UK economy and the resulting material deterioration in the public finances, with Fitch forecasting the fiscal deficit to materially widen this year and government debt set to increase to well over 120% of GDP over the next few years. “
“The COVID-19 pandemic and the containment measures imposed to limit its spread have hit UK economic activity hard.”
“Changes in UK-EU trading arrangements are likely to curtail the pace of recovery as the Brexit transition period ends on 1 January 2021.”
Credit: FX Street