S&P stands by UK 'AAA' rating as Cyprus cut again

Standard & Poor's ratings agency has said it will maintain the UK's 'AAA' long-term and 'A-1+' short-term credit rating, despite the economic problems and exposure to the Eurozone. According to S&P's latest statement the U.K.'s wealthy and diverse economy, fiscal and monetary policy flexibility, also adaptable product and labour markets support our unsolicited ratings on the sovereign. They go on to say: “In our opinion, the U.K. government remains committed to implementing its fiscal program, and we believe it can respond rapidly to economic challenges. “We also expect that the Bank of England monetary policy, which we view as highly accommodative, will help keep the government's borrowing costs in check.” Standard & Poor's were not so generous yesterday when they cut Cyprus' long-term sovereign bond rating to BB from BB+.  They reduced their credit rating due to the government's weak fiscal position and direct exposure to Greece. August 3, 2012