Fitch lowers long-term outlook to negativeMarch 15, 2012 - 10:00 AMT PanARMENIAN.Net - Fitch lowered Britain's long-term outlook Wednesday, March 14, to negative from stable, while confirming its top-level AAA rating. According to AFP, the ratings agency said the revision "reflects the very limited fiscal space to absorb further adverse economic shocks in light of such elevated debt levels and a potentially weaker than currently forecast economic recovery". The change represented a more than 50 percent chance of a downgrade over the next two years, Fitch said, citing ongoing financial tensions in the eurozone. "The easing of financial market tensions in the eurozone in recent months has diminished the risks to the UK, but in Fitch's opinion, the crisis is not resolved and could once more intensify," a statement said. While British banks were relatively well placed to absorb shocks of future market turmoil and losses on eurozone exposures, an intensification of the eurozone crisis may impact on the government's ability to meet its deficit and debt reduction targets, said the agency. Fitch said its confirmation of the AAA rating reflected progress made in reducing the government's structural budget deficit. "The UK's 'AAA' rating is underpinned by a high-income, diversified and flexible economy as well as political and social stability," it said. However, the deficit was second in size only to that of the US and indebtedness was "significantly above the 'AAA' median". "Fitch judges the government's fiscal consolidation plans to be credible, reflecting the strong political commitment and institutional capacity," it said, adding the upcoming budget was expected to reaffirm the government's commitment to deficit reduction. Triggers that could prompt a downgrade include fiscal easing resulting in government debt peaking later and higher than the current forecast of about 94 percent by 2014-15, as well as adverse shocks resulting in higher levels of government borrowing and debt than currently projected. "In the absence of adverse shocks, Fitch does not expect to resolve the Negative Outlook until 2014," said the statement. Fitch last formally reviewed Britain's sovereign ratings a year ago. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. Armenia: Defense Ministry warns against involving army in political processes The Ministry’s statement came after a video surfaced online, showing soldiers joining the protests in Tavush. Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. |