Press Release|Sovereigns
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KBRA Affirms AA/K1+ Ratings for the United Kingdom; Stable Outlook

28 Aug 2026   |   Dublin

Contacts

KBRA Europe (KBRA) affirms the long-term issuer ratings of AA for the United Kingdom of Great Britain and Northern Ireland (UK). KBRA also affirms the short-term issuer ratings of the sovereign at K1+. The Outlook on the long-term ratings is Stable.

This credit rating is an unsolicited credit rating.
With Rated Entity or Related Third-Party ParticipationNo
With Access to Internal DocumentsNo
With Access to ManagementNo

The affirmation of the ratings reflects the UK’s large, wealthy, and resilient economy, strong institutional framework, globally important financial sector, and substantial financing flexibility. The Stable Outlook balances expectations for gradual fiscal consolidation and eventual debt stabilisation against subdued growth, elevated borrowing costs, persistent inflationary pressures, and limited fiscal headroom. Public debt remains high, while the UK’s relatively large stock of inflation-linked debt increases the sensitivity of the public finances to inflation shocks. Brexit continues to weigh on trade, investment, and potential growth, while persistent current account deficits and reliance on foreign capital increase sensitivity to shifts in global financing conditions. These vulnerabilities are mitigated by sterling’s reserve currency status, deep and liquid capital markets, a flexible exchange rate, and the UK’s strong access to liquidity.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

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