LONDON (MNI) - The large 'AAA' sovereign borrowers - like the US, UK, France and Germany - have 'exceptional financing flexibility', Fitch Ratings said today, but warned this is not enough to maintain their current rating.

The major AAA states must set out further credible consolidation plans in 2010 to secure their triple-A ratings, the ratings agency announced today in its 'Sovereign Review and Outlook' for 2010:

"While current ratings incorporate a further substantial rise in public indebtedness, all major AAA sovereign governments need to articulate more credible and stronger fiscal consolidation plans during the course of 2010 to underpin confidence in the sustainability of public finances over the medium term and the commitment to low and stable inflation".

The UK, Spain and France particularly need to 'articulate' credible consolidation plans this year, "given the pace of fiscal deterioration and the budgetary challenges they face in stabilising public debt."

"Failure to do so will greatly intensify pressure on their sovereign ratings," Fitch states.