UK rising debt posts key long-term risk to ratings - Scope
LONDON, May 23 (Reuters) -Britain's rising debt levels pose a key long-term risk to its credit rating and, regardless of the result of July's general election, its budgetary and fiscal picture are unlikely to improve materially, Scope Ratings said in a Wednesday note.
The ratio of UK general government debt, which Scope currently rates "AA", to gross domestic product is forecast to rise to nearly 110% by 2029, from 101% right now, Scope said, in its note which was published before the election was announced.
Germany-based Scope, which obtained recognition from the European Central Bank in November, expects the British economy to grow by 0.8% this year and 1.4% next year.
UK Prime Minister Rishi Sunak on Wednesday called a general election for July 4, saying Britons would be able to choose their future in a vote his Conservatives are widely expected to lose to the opposition Labour Party after 14 years in power.
"Regardless of the outcome of general elections, we consider it unlikely that UK budgetary policies, fiscal framework will be strengthened materially," Scope said.
Reporting by Amanda Cooper; Editing by Alun John
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