S&P lowers United Kingdom view to negative

Standard & Poor's said it revised the outlook on the unsolicited long-term ratings on the United Kingdom to negative from stable.

The agency also said it affirmed its AAA/A-1+ long- and short-term unsolicited sovereign credit ratings. The transfer & convertibility assessment on the United Kingdom remains at AAA.

S&P also said it revised to negative from stable the outlook on the AAA long-term issuer credit ratings of the Bank of England and the debt program of Network Rail Infrastructure Finance plc.

The outlook revision reflects a view that the agency could lower the ratings on the United Kingdom within the next two years if fiscal performance weakens beyond current expectations, S&P said.

The agency said it believes this could occur as a result of a delayed and uneven economic recovery, or due to a weakening of political commitment to consolidation.

If economic growth recovers more slowly than currently forecasted, such slow recovery could result in net general government debt approaching 100% of GDP from a current estimated level of 85% of GDP in 2012, S&P said.

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