Fitch Affirms Sovereign Ratings Of UK, France

(RTTNews) - Fitch Ratings maintained the sovereign ratings of the U.K. with a 'negative' outlook, while France's rating was affirmed with 'stable' outlook.

The agency kept the U.K.'s credit rating at 'AA' on Friday. The ratings balance a high-income, diversified and advanced economy against comparatively high public sector indebtedness, the agency said.

Fitch noted that deep capital markets and sterling's international reserve currency status and high governance and human development indicators further support the ratings. However, the 'Brexit' vote has ushered a period of heightened uncertainty.

The rating agency also affirmed Bank of England's rating at 'AA' with a 'negative' outlook.

In a separate communique, the agency said France's credit rating remained at 'AA'.

The ratings balance a wealthy and diversified economy, track record of relative macro-financial stability, strong and effective civil and social institutions with a high general government debt/GDP ratio and fiscal deficit, Fitch said.

The rating was underpinned by its strong financing flexibility, as a core Eurozone member with access to the Eurozone's deep and liquid capital markets, and with government debt entirely denominated in euros.

The stable outlook suggests that Fitch does not expect developments with a high likelihood of leading to a rating change.