(Bloomberg) -- The U.K. had its credit rating affirmed by S&P Global Ratings, which cited balanced risks and significant fiscal flexibility.

The company maintained the nation’s AA grade with a stable outlook.

“We anticipate that in 2020, the U.K. economy will contract by 9.7% and public finances will deteriorate, consolidating in subsequent years as the economy recovers,” the ratings firm said. Low rates and longer maturities give policy makers space to provide support to the economy.

The decision comes just one week after Moody’s Investors Service downgraded the U.K. by one level to Aa3, citing softer economic growth, an erosion of fiscal strength and a weakening in institutions and governance. Fitch Ratings cut its rating to AA- in March.

S&P said its ratings could face downward pressure if the economic recovery is weaker than expected, while upside could be seen if trade talks with the European Union result in key sectors retaining access to European markets without penalizing tariffs or significant nontariff barriers.

The pound pared losses against the dollar after the news, trading down about 0.3% at $1.3048.

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