Fitch Holds UK Credit Rating Steady at AA- Amid Economic Resilience

The United Kingdom's credit rating has been held at AA- by Fitch, with a stable outlook maintained. This decision comes as official data shows the UK economy grew unexpectedly by 0.3% in June. The growth is attributed to easing energy prices, the start of the men's soccer World Cup, and favorable weather.

Fitch cites the country's high-income, large, diversified, and flexible economy, as well as its credible macroeconomic policy framework and financing flexibility from deep capital markets and sterling's status as an international reserve currency. The agency also notes that Prime Minister Andy Burnham's stronger position within the ruling Labour Party and higher public approval ratings should support greater political stability for the rest of the current parliamentary term.

Despite this positive reading, concerns over fiscal discipline persist, particularly in light of the lingering effects of the Iran war. Fitch's decision is in line with similar rating actions by S&P in April and Moody's in November 2025.