Standard & Poor's Maintains UK Credit Rating
The international credit rating agency has maintained the country's rating, set the outlook as stable, and shared economic expectations.
International credit rating agency Standard & Poor's has affirmed the UK's credit rating at "AA/A-1+", while maintaining its rating outlook as "stable" and sharing the country's economic growth forecasts.
Credit Rating and Outlook
In the statement made by Standard & Poor's, it was announced that the UK's long and short-term foreign and local currency credit ratings were maintained at the AA/A-1+ level.
It was officially announced that the rating outlook was determined as stable.
Economic Resilience
It was stated that the stable outlook reflects the assessment that the UK economy maintains its resilience against the energy shock stemming from the conflicts in the Middle East.
It was expressed that the expectation of growth remaining reasonably strong was effective in this decision.
Risks and Balances
It was conveyed that the positive assessment of the economy is balanced by elements such as limited fiscal maneuver room and high public debt.
It was noted that risks posed by high public expenditures and debt servicing costs were also included in the report.
Growth Expectations
It was announced that the UK economy is expected to grow by 1.3 percent in real terms in 2026.
It was stated that an average growth of 1.4 percent is forecasted for the 2027-2029 period.
Budget Deficit and Fiscal Process
Information was shared that the Ministry of Finance provided targeted support against high energy prices.
It was reported that the general government budget deficit is expected to materialize at the 4.8 percent level in the 2026 fiscal year and the fiscal consolidation process will continue.
Inflation and Interest Rate Forecasts
It was emphasized that high hydrocarbon prices continue to exert an impact on inflation.
It was announced that the Bank of England is expected to increase the policy rate by 0.25 points towards the end of 2026.