The UK's ratings balance a high income, diversified and advanced economy against high and rising public sector indebtedness. Sterling's reserve currency status, deep capital market and strong governance indicators support the ratings. The very long average maturity of public debt (15 years) is among the highest of all Fitch-rated sovereigns and mitigates refinancing and interest rate risks. Public debt is almost exclusively in sterling, so a weaker exchange rate will not lead to a deterioration in debt dynamics. The Negative Outlook reflects the impact the coronavirus pandemic is having on the UK economy and the ... (full story)

The BoE's Long-Term IDR is directly aligned with that of the UK government. The BoE is the monetary arm of the UK sovereign and as such its credit profile is aligned with that of the sovereign government. Fitch currently rates only the BoE's three-year-maturity US dollar bonds. The rating does not apply to typical central bank liabilities of the BoE, like bank notes or commercial banks' reserves that are monetary liabilities rather than rateable debt. The BoE's rating reflects its central role in the UK and international financial system. The rating is underpinned by support from the UK sovereign. The near certainty ... (full story)