Fitch Downgrades United Kingdom To ‘aa+’; Outlook Stable

U.S. Relations With United Kingdom

Despite the UK’s strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a ‘AAA’ rating. – Higher than previously projected budget deficits and debt primarily reflects the weak growth performance of the UK economy in recent years, partly due to headwinds of private and public sector deleveraging and the eurozone crisis. Fitch has revised down its forecast economic growth in 2013 and 2014 to 0.8% and 1.8%, respectively, from 1.5% and 2.0% at the time of the last review of the UK’s sovereign ratings in September 2012. The UK economy is not expected to reach its 2007 level of real GDP until 2014, underscoring the weakness of the economic recovery. – Despite significant progress in reducing public sector net borrowing (PSNB from a peak of 11.2% of GDP (GBP159bn) in 2009-10, the budget deficit remains 7.4% of GDP (excluding the effect of the transfer of Royal Mail pensions) and is not expected to fall below 6% of GDP and GBP100bn until the end of the current parliament term. The slower pace of deficit reduction means that the next government will be required to implement substantial spending reductions (and/or tax increases) if public debt is to be stabilised and reduced over the medium term. The Stable Outlook on the UK’s sovereign ratings reflects the following factors. – Under Fitch’s baseline economic and fiscal scenario, which assumes a continued policy commitment to reducing the underlying budget deficit and medium-term annual growth potential of 2%-2.25%, government debt gradually falls as a share of national income in the latter half of the decade. – The long average maturity of public debt (15 years) – the longest of any high-grade sovereign -exclusively denominated in local currency and low interest service burden implies a higher level of debt tolerance than many high-grade peers. – The international reserve currency status of sterling and the ability and willingness of the Bank of England to intervene in the UK government debt market largely eliminates the risk of a self-fulfilling fiscal financing crisis. – The gradual improvement in the UK banking sector’s capital and liquidity position has further reduced contingent liabilities arising from this sector.

U.S. Assistance to the United Kingdom The International Fund for Ireland (IFI), created in 1986, provides funding for projects to generate cross-community engagement and economic opportunity in Northern Ireland (the United Kingdom) and the border counties of Ireland. Since the IFI’s establishment, the U.S. Government has contributed over $500 million, roughly half of total IFI funding. The other major donor to IFI is the European Union. Bilateral Economic Relations The United Kingdom is a member of the European Union and a major international trading power. The United Kingdom is one of the largest markets for U.S. goods exports and one of the largest suppliers of U.S. imports. The United States and the United Kingdom share the world’s largest bilateral foreign direct investment partnerships. The United Kingdom is a large source of foreign tourists visiting the United States.

The United Kingdom Oil Markets, 2013

Scope – Historic and forecast data relating to production, consumption, imports, exports and reserves are provided for each industry sub-segment for the period 2000-2020. – Historical and forecast data and information for all the major oil fields, refineries, pipelines and storage terminals in The United Kingdom for the period 2005-2017. – Operator and equity details for major crude oil assets in The United Kingdom. – Key information relating to market regulations, key energy assets and the key companies operating in the The United Kingdom’s energy industry. – Information on the top companies in the The United Kingdom including business description, strategic analysis, and financial information. – Product and brand updates, strategy changes, R&D projects, corporate expansions and contractions and regulatory changes. – Key mergers and acquisitions, partnerships, private equity and venture capital investments, and IPOs. Reasons to buy – Gain a strong understanding of the country’s energy market. – Facilitate market analysis and forecasting of future industry trends. – Facilitate decision making on the basis of strong historic and forecast production, reserves and capacity data. – Assess your competitor’s major crude oil assets and their performance.