Standard & Poor’s puts UK credit outlook on negative

<p>Standard & Poor’s has revised down the UK’s credit outlook to negative.</p>

Standard & Poor's (S&P) has downgraded the UK's credit rating outlook to negative, which indicates the nation could run the risk of losing its top AAA rating in the near future.

S&P said it could lower the UK's rating if its economic performance weakens more than the organisation expects it to.

The Treasury stated that S&P endorsed the government's commitment to reducing the deficit.

A spokesperson commented: "The economy is on the right track and just this week it was again confirmed that jobs are being created, with over one million private sector new jobs in the last two years."

Fellow agencies Moody's and Fitch have both revised the UK to a negative outlook in the first half of 2012.

At 10:40 GMT, the pound was making gains on forex markets. Sterling advanced by 0.1 per cent against the dollar to £1 buying $1.613, while it appreciated by 0.1 per cent versus the euro to €1.234.

Find forex trading strategies for the pound at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.