Fitch confirms UK’s triple-A rating, stable outlook

Ratings agency Fitch confirmed its triple-A rating for British sovereign debt and maintained a stable outlook on Friday, just over two months after rival agency Standard & Poor's downgraded its outlook to 'negative'.

Fitch said its projections for British government debt to rise to 80 percent of gross domestic product by the end of 2010 showed the outlook was no worse than for other big, triple-A rated countries, although Britain had to do more to cut debt.

"The UK faces one of the most serious post-crisis fiscal adjustment challenges among 'AAA' governments," the ratings agency said in a statement.

Britain's April annual budget did not set out adequate plans for how the country would cut borrowing over the next five years, Fitch said.

"Fiscal policy will need to be re-orientated more aggressively towards ensuring public debt sustainability over the next year or so as deflation concerns diminish," it said.

"The implementation of a more credible medium-term fiscal framework would help buttress the government's commitment to consolidation and underpin the UK's 'AAA' status." A national election due within a year has made both Britain's ruling Labour Party and the opposition Conservatives — who are well ahead in opinion polls — reluctant to go into detail about long term budget plans for fear of scaring voters.