– Fitch now forecasts that general government gross debt (GGGD) will peak at 101% of GDP in 2015-16 (equivalent to 86% of GDP for public sector net debt, PSND) and will only gradually decline from 2017-18. This compares with Fitch’s previous projection for GGGD peaking at 97% and declining from 2016-17 and the ‘AAA’ median of around 50%. – Fitch previously commented that failure to stabilise debt below 100% of GDP and place it on a firm downward path towards 90% of GDP over the medium term would likely trigger a rating downgrade. 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.
Markets open in 5 hrs 24 mins MTY franchises Mucho Burrito in the United Kingdom Press Release: MTY FOOD GROUP INC. Mon, Sep 30, 2013 3:53 PM EDT 0.18 TSX Trading Symbol: “MTY” MONTREAL , Sept. 30, 2013 /CNW Telbec/ – MTY Food Group Inc. (“MTY” or the “Company”) ( MTY.TO ) announced today that it is making inroads into England and United Kingdom with its Mucho Burrito Mexican brand which is set to open its first restaurant later this year in Brighton England . The Montreal -based firm has signed an area master development agreement with a master franchisee to develop the brand in Kent & East & West Sussex England. “We’re incredibly excited about expanding the Mucho Burrito brand in the England & United Kingdom marketplace and continuing to feed the local appetite with our fresh gourmet spin on Mexican food,” said MTY Food Group’s chief development officer Sean Black . “We look forward to bringing our upscale offering to local guests and further positioning ourselves as the premier concept in the Mexican category.” The new master development Franchise has been licensed to W & W Burrito Development Ltd and operated by Hugh Wastnage & Martin Wylie . Described as “Mucho food with Mucho quality,” Mucho Burrito provides guests with an unmatched flavour experience by offering fresh and authentic Mexican food in a contemporary and casual setting. Featuring a “no rules” menu enhanced by the scent of spices and seasonings, roasted vegetables and charbroiled and braised meats, each meal is made to order in front of guests with authentic recipes and fresh ingredients made daily. Guests can choose from a variety of menu selections including hand-rolled burritos, tacos and quesadillas, as well as nacho plates, salads and a selection of custom “Johnny Mucho” sauces. Certain information in this News Release may constitute “forward-looking” information that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Company or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this News Release, this information may include words such as “anticipate”, “estimate”, “may”, “will”, “expect”, “believe”, “plan” and other terminology. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this News Release. Except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances.