Bank of England Keeps Top Credit Rating from Fitch

The Bank of England has maintained its 'AA-' long-term foreign-currency issuer default rating from Fitch, with a stable outlook. This affirmation covers the central bank's three-year U.S. dollar bonds and reflects expectations of near-certain support from the UK government.

Fitch affirms the Bank of England's senior unsecured long-term debt rating at 'AA-' and its short-term senior unsecured rating at 'F1+', matching the central bank's issuer default rating levels.

The ratings agency notes that the Bank of England's standing is underpinned by its central role in the UK and global financial system, as well as ownership by the UK Treasury. Fitch adds that the UK's governance profile supports this assessment, citing the country's strong institutional capacity, rule of law, and relatively low corruption levels.

The Bank of England's rating could face downward pressure if the UK sovereign rating weakens, while any positive change in the sovereign rating could also lift the central bank's rating. This closely ties the BoE's rating trajectory to developments in the credit profile of the UK government.