Business · Economy · 1 day ago
S&P affirms UK credit rating and stable outlook
S&P Global kept the United Kingdom’s sovereign credit rating at AA/A-1+ and maintained a stable outlook.
The agency said the British economy can withstand an energy shock linked to conflict in the Middle East.
Higher fuel prices, along with costs for oil, gas and inputs such as fertilizer, are adding to inflation pressure.
S&P expects the Bank of England to raise its main interest rate by 25 basis points in late 2026.
The stable outlook reflects the agency’s expectation that the economy will continue to cope with the shock.
S&P also said the Labour Party’s parliamentary majority is likely to keep it in power until the next general election, scheduled for 2029, barring unexpected events.
It warned that the government must balance spending plans with limited revenue, because excessively high taxes could slow economic growth.
S&P Global affirmed the United Kingdom’s sovereign credit rating at AA/A-1+ and maintained a stable outlook.
The agency said the British economy could withstand the energy shock caused by the conflict in the Middle East.
It said higher fuel prices and other conflict-related production costs, including fertilizers, were putting pressure on inflation.
S&P expects the Bank of England to raise its main interest rate by 25 basis points in late 2026.
The agency warned that excessive tax burdens could constrain GDP growth.
- Who
- S&P Global affirmed the United Kingdom’s sovereign credit rating.
- What
- It kept the rating at AA/A-1+ and maintained a stable outlook.
- When
- 2026-10-10, the article’s publication date.
- Where
- The United Kingdom.
- Why
- S&P cited the economy’s ability to withstand the energy shock from the conflict in the Middle East.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
This story does not have a timeline yet.
- Credit rating
- AA/A-1+
- Outlook
- Stable
- Expected interest-rate increase
- 25 basis points in late 2026
- Next general election
- Scheduled for 2029
Sources
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