Fitch places UK AAA credit rating under review

Fitch Ratings has placed the United Kingdom’s AAA rating on review for a downgrade.

The agency cited forecasts indicating that government debt will peak later and at a higher level than previously expected.

The warning comes just days after Chancellor George Osborne unveiled an austere budget.

Last month, Moody’s Investor Service downgraded the UK’s credit rating, saying that sluggish economic growth would hinder the Government’s ability to control rising debt.

Fitch said today it was putting the UK on “rating watch negative” - indicating a heightened probability of a downgrade in the near term – and that it expects to complete its review of the UK’s sovereign debt ratings by the end of April.