Fitch Maintains U.K. Ratings At 'AA+'

(RTTNews) - Fitch Ratings on Friday affirmed the sovereign ratings of the U.K. with 'stable' outlook citing its favorable macroeconomic trends.

The long-term ratings were maintained at 'AA+'. Strong GDP growth, falling unemployment and inflation close to the 2 percent target continued in the economy since the last review in December 2013.

Fitch judges growth to be partly cyclical, reflecting the gradual closing of the previous large output gap. Though the strengthening economic recovery supports the fiscal consolidation efforts, the fiscal deficit remains large compared with rating peers and the 'AA' median of a 1.5 percent surplus, it said.

Fitch expects gross general government debt, using the EU Treaty definition, to peak at 92 percent-93 percent of GDP in 2015-16 and to start falling in 2017.

The UK's ratings are underpinned by its high-income, diversified and flexible economy as well as a high degree of political and social stability, the agency said.

A report released by the Office for National Statistics today showed that construction output grew 1.2 percent in April from March, driven by a 0.9 percent rise in new work and a 1.6 percent rise in repair and maintenance. On a yearly basis, construction output climbed 4.6 percent.

GDP data released on May 22 estimated a 0.6 percent growth in construction output in the first quarter. ONS said this has been revised to an increase of 1.5 percent in this release.