New UK govt needs stronger growth to stabilize debt, rating firm S&P Global says

[July 09, 2024]  LONDON (Reuters) - Stronger economic growth is key to stabilizing Britain's rising public debt, credit rating agency S&P Global said on Tuesday, in its first comment on the new Labor government since its election win last week.  

Britain's Prime Minister Keir Starmer speaks during an interview at the Senedd as part of a two-day tour of the four nations of the United Kingdom in Cardiff, Britain, Monday, July 8, 2024. Alastair Grant/Pool via REUTERS

S&P said that with the UK's debt-to-GDP ratio expected to hit 100% next year, the government was expected to uphold a commitment to strengthen public finances to slowly bring that ratio down.

S&P currently rates the UK at AA with a 'stable' outlook, which is one notch higher than the other main rating agencies Moody's and Fitch.

(Reporting by Marc Jones; Editing by Amanda Cooper)

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