OVERVIEW The United Kingdom has high monetary, labor, and product-market flexibility, and a wealthy and diversified economy. Output and employment growth have exceeded our previous projections, but the U.K.'s fiscal position has underperformed our expectations and has yet to reflect a strengthening economy. We are affirming our 'AAA/A-1+' long- and short-term sovereign credit ratings on the U.K. The stable outlook reflects our assumptions that the U.K. fiscal position will gradually strengthen as real-wage and productivity growth improve toward pre-crisis averages, and that the government that emerges from the May 2015 general election will remain committed to fiscal consolidation. Our outlook also assumes the U.K.'s ongoing EU membership. RATING ACTION On Dec. 12, 2014, Standard&Poor's Ratings Services affirmed its
