In an expected announcement, Fitch Ratings has cut Britain's top credit grade ratings. The decision was reached by the firm citing weak economic and fiscal forecasts.
This is the second company that had cut Britain's ratings in the past two months. The UK rating is currently at AA+ from AAA with a stable outlook, The growth projection by Fitch was cut and it also forecasted that the debt would reach a level of 101% of gross domestic product by 2015 to 2016.
According to a statement from Fitch, "Despite the U.K.'s strong fiscal financing flexibility underpinned by its own currency with reserve-currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with an AAA rating."
This is another blow for the Chancellor of the Exchequer right after the International Monetary Fund advised his office to review the scale of budget cuts implemented this year. Another ratings agency, Moody's Investors Service lowered its Britain rating from AAA to AA1 last February 22.
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