Agency affirms Britain’s credit rating

Britain’s gold-plated AAA credit rating has been affirmed by a key agency in a boost to Chancellor George Osborne’s austerity measures.

Standard and Poor’s said the UK government had the ability to “respond rapidly” to economic challenges as it confirmed both the rating and the country’s “stable” outlook.

The move comes after rival agencies Fitch and Moody’s put the UK on negative outlook.

The agency warned that if the government’s fiscal policy was to loosen, the UK could lose its coveted rating.