The U.K. faces a “significant” risk of losing its triple-A rating, as its economy has worsened since it was placed on negative outlook last year, David Riley, Fitch Ratings global managing director for sovereign ratings, told CNBC.
“We have had the U.K. on a negative outlook for almost 12 months and during that period, the economic and the fiscal outlook has actually deteriorated,” Riley said on Monday.
The U.K. has retained its triple-A rating from all three major ratings agencies since the 1970s, including through the “winter of discontent” in 1978, the sterling’s crash out of the Exchange Rate Mechanism in 1992, and the recent European financial crisis. However, it was placed on negative watch by both Moody’s Investors Service and Fitch Ratings last year.
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