Fitch Ratings on Friday stripped Britain of its top triple-A rating, moving it down one notch to 'AA+' as a weaker economic outlook continues to push up the country's debt. "The downgrade of the UK's sovereign ratings primarily reflects a weaker economic and fiscal outlook and hence the upward revision to Fitch's medium-term projections for UK budget deficits and government debt," said the ratings agency.

Fitch announced on Friday that it has placed Britain's top-level AAA credit rating on watch for possible downgrade because the government's latest forecasts expect debt to peak later and at a higher level than previously expected. "Fitch Ratings has placed the United Kingdom's 'AAA' Long-term Issuer Default Ratings on rating watch negative (RWN) indicating a heightened probability of a downgrade in the near term," it said in a statement. The ratings agency said it plans to complete its review of Britain by the end of April.

By Christina Fincher and Daniel Bases LONDON/NEW YORK (Reuters) - Britain looked poised to lose its AAA rating from a second ratings agency after Fitch Ratings warned on Friday it was likely to downgrade the country in the coming weeks, citing high government debt levels and weak growth. A month since Britain was downgraded by Moody's, Fitch put the country on review and said a downgrade was a heightened possibility. A decision is due by the end of April, Fitch said in a statement.

Fitch on Friday warned political deadlock in Italy following elections this week in which no party won an overall majority added downward pressure on its sovereign credit rating. "It has the potential to disrupt policy making and reduce policy continuity, and to weigh further on an already weakening economy," Fitch Ratings said in a statement. "The prospect of a lengthy period of political instability following Italian parliamentary elections adds to the pressure on the country's sovereign rating," it said. Fitch scores Italy with an A- rating and a negative outlook.