KBRA Affirms AA/K1+ Ratings for the United Kingdom with a Stable Outlook
1 Mar 2024 | Dublin
KBRA Europe (KBRA) affirms the long-term issuer ratings of AA for the United Kingdom of Great Britain and Northern Ireland (UK). KBRA also affirms the short-term issuer ratings of the sovereign at K1+. The Outlook on the long-term ratings is Stable.
| This credit rating is an unsolicited credit rating | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
The affirmation of the ratings reflects the UK’s large, wealthy, resilient, institutionally advanced, innovative and flexible economy. The Outlook balances these credit strengths against weak fiscal and economic prospects over the medium term, which continue to render the sovereign vulnerable to shock. Crucially however, price growth has started to slow in recent months, which is encouraging. KBRA notes that Brexit related uncertainties continue to hamper economic performance. However, a softening of political tension with the European Union and an agreement on trade in Northern Ireland could help quell some uncertainty. In KBRA’s view, the UK’s very strong access to liquidity is a key credit consideration.
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