Credit ratings agency Standard & Poor's warned that Britain's cherished AAA credit rating could be downgraded in case the new government fails to cut massive public debt.
As per agency’s estimates, government debt will soar to 77 per cent of country’s GDP in the current year and swell to 100 per cent by 2014. It may be noted here that government was at 44 per cent in 2007.
S&P revised its outlook for Britain to negative in May 2009.
Fitch also warned that Chancellor Alistair Darling’s announced plans to trim down the fiscal deficit would not be able to prevent a downgrade in country’s AAA rating.
Commenting on the topic, S&P said, “In the absence of a strong fiscal consolidation plan, the UK's net general government debt burden may approach a level incompatible with an 'AAA' rating.”
However, the credit ratings agency added that it would review the rating and outlook again after fiscal measures become clearer after the upcoming general elections, which are widely expected to take place in May.