Tue, 03 Aug 2021

Fitch upgrades UK credit as country rebounds after lockdown

Robert Besser
24 Jun 2021, 03:36 GMT+10

NEW YORK CITY, New York: Rating agency Fitch has raised the outlook for the UK's sovereign debt score to 'stable' from 'negative', saying the country's macroeconomic, labour market, and fiscal out-turns since the start of this year indicate its economy has been more resilient to the pandemic shock than anticipated.

"The roll-out of the UK's coronavirus vaccination programme has been rapid...which could dampen the impact of infection cases on healthcare capacity and support economic resilience to ongoing developments in the pandemic," Fitch said, as quoted by Reuters.

The agency kept the UK's sovereign credit rating at AA-.

Last year, the UK's economy had contracted 9.8 percent - its sharpest slump in more than 300 years and the largest fall in output of any large advanced economy - due to the fallout from the coronavirus pandemic.

However, economic recovery picked up in April as the lockdown was relaxed, with output climbing by a record 27.6 percent amid the fastest monthly growth seen since July 2020.

According to the Organisation for Economic Co-operation and Development, Britain's economy suffered the largest drop of all countries in the OECD, except for Argentina and Spain last year.

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