Rating agency Fitch maintained United Kingdom's sovereign debt rating at "AA-" on Friday, citing Prime Minister Rishi Sunak's macroeconomic policy framework, deep capital markets and the sterling's international reserve currency status.
The agency affirmed its outlook for the country at "negative", due to high public and external debt, as well as rising energy prices.
Despite concerns about a potential recession, investors have pinned hopes that the new government leadership will reinstill confidence in the country's fiscal health.
"The new fiscal strategy has contributed to improved financial markets confidence," Fitch said.
The agency also affirmed Bank of England's rating at "AA-", with a negative outlook.
(Reporting by Nandhini Srinivasan in Bengaluru)