The U.K.'s triple-A credit rating is safe, thanks to the government's austerity measures and a flexible economy, rating agency Moody's said. The rating agency said the government's deficit-reduction measures, continued economic growth and the long maturity profile of the country's debt all support the credit rating, Reuters reported.
Britain's economy faces obstacles including private sector deleveraging and slower growth in the country's trading partners, Moody's said.
"Nevertheless, Moody's believes that the U.K. has the wherewithal and ability to meet these challenges whilst maintaining its Aaa rating," lead analyst Kenneth Orchard said.
The government welcomed the reported. "This supports the government's approach to cutting the deficit," a finance ministry spokesman told Reuters.