Bulletin
Investor Alert

New York Markets After Hours

Market Pulse Archives

Sept. 30, 2022, 6:37 p.m. EDT

S&P puts U.K. AA credit rating on negative outlook due to worries over fiscal plan

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    British Pound (GBPUSD)

or Cancel Already have a watchlist? Log In

By William Watts

GBPUSD

S&P Global Ratings on Friday moved its outlook on the U.K.'s AA sovereign credit rating to "negative" from "stable," citing concerns about the country's fiscal outlook. The British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.4511% tumbled and yields on British government bonds, or gilts, soared after Treasury chief Kwasi Kwarteng on Sept. 23 unveiled a mini-budget plan that included 45 billion pounds in unfunded tax cuts. The Bank of England this week stepped in to buy gilts in an effort to stabilize the bond market. S&P, in a statement, said it now expects the U.K. government deficit to widen by an average 2.6% of gross domestic product annually through 2025, while net general government debt will continue on an upward trajectory, "in contrast to our previous expectation of it declining as a percentage of GDP from 2023." The ratings firm said the U.K. "continues to face balance-of-payment risks stemming from its persistently large current account deficit, which we forecast will widen to 6% of GDP this year, in part driven by higher costs of energy imports."

/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2137
-0.0055 -0.4511%
Volume: 0.0000
Dec. 6, 2022 4:02p
loading...

Get news alerts on British Pound — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.