UK could lose prized AAA debt rating, Fitch warns Despite recognising the rule breach, Fitch said it "assumed" the Government would stick to its existing plans and did not demand further steps to hit the target. It added that the "negative outlook," which implies a 50pc chance of a downgrade, will not be resolved until 2014. However, the agency stressed that the UK had "very limited fiscal space to absorb further adverse economic shocks" without losing its AAA status and warned that a downgrade "would likely be triggered" by any "discretionary" borrowing to stimulate growth. The update came as official figures showed that Britain's powerhouse services sector grew by 1.1pc in July, the strongest performance since May last year, prompting economists to declare that the double-dip recession is finally over. The data appeared to confirm that slow, underlying growth is returning after second-quarter GDP was upwardly revised from an initial estimate of contraction of 0.7pc to a decline of just 0.4pc. David Tinsley, UK economist at BNP Paribas, said: "It's been a positive week for UK data. UK GDP was revised up, while at the same time consumer confidence and the level of mortgage approvals has risen. Also potentially significant is the easing in secured household credit availability. [The] index of services adds to the positive tone. Chris Williamson, UK economist at Markit, added: "The end of recession is in sight as the latest data on the service sector add to signs the UK economy rebounded strongly in July. However, it seems likely the underlying pace of growth will be modest at best. Economists are forecasting growth of as much as 0.7pc in the three month to September.