Fitch keeps UK's credit rating at 'AA-' with 'stable' outlook

Aug 14 (Reuters) - Fitch on Friday maintained its sovereign credit ratings on the United Kingdom at "AA-" with a "stable" outlook.

"UK's ratings are supported by its high-income, large, diversified and flexible economy, credible macroeconomic policy framework, and financing flexibility from deep capital markets and sterling's international reserve currency status," the global ratings agency said in its report.

The UK economy unexpectedly grew by 0.3% in June as companies enjoyed a respite from the energy price surge caused by the Iran war, the start of the men's soccer World Cup and hot weather, official data showed.

While the stronger reading offers some encouragement for Prime Minister Andy Burnham, who took office in July after Keir Starmer's resignation, he still faces an array of challenges, including worries about fiscal discipline and the lingering effects of the Iran war.

"His more commanding position within the ruling Labour Party, and higher public approval ratings should support greater political stability for the remainder of this parliamentary term," Fitch said.

Its ratings affirmation follows peer S&P's similar action in April and Moody's in November 2025.

(Reporting by Unnamalai L in Bengaluru; Editing by Shilpi Majumdar)