Fitch, a credit rating agency, followed S&P’s lead on Thursday and lowered the economic outlook for Britain’s sovereign debt from “stable” to “negative,” following their lead after the UK government unveiled a significant tax cut package.
In a statement, Fitch warned that the government’s new economic plan’s sizeable and unfunded fiscal package “may result in a material increase in the fiscal deficit in the medium term.”
The US agency maintained its “AA-negative” rating on Britain’s sovereign debt, one rung below S&P’s assessment of this debt.
However, the outlook downgrade suggests that in the future, if Britain’s economic situation does not improve, the agency may also cut its sovereign debt rating.
The outlook for British debt is changed from “stable” to “negative” by Fitch.
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