S&P confirms top AAA rating for Britain

Standard & Poor's rating agency on Monday confirmed its top AAA credit rating for Britain and maintained a stable outlook despite a poor growth outlook and a sluggish economy. With the stable outlook, the agency does not foresee revising Britain's rating in the medium-term. S&P warned however that the rating could be re-evaluated if the government were to weaken its resolve to reduce public debt. "Standard & Poor's Ratings Services today affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the UK. The outlook remains stable," said a statement. S&P said the agency's decisions reflected Britain's "wealthy and diversified economy, fiscal and monetary policy flexibility, and relatively adaptable product and labour markets. "In addition, we view the UK as having deep capital markets with strong demand for long-dated gilts by domestic institutional investors. There is also demand from non-residents for sterling-denominated UK government debt, which provides some diversification to the UK's investor base."