Fitch is upgrading Skipton Building Society’s long and short term credit rating.

The mutual has seen its long term rating upgraded to BBB (from BBB-) and its short term rating upgraded to F2 (from F3) with a positive outlook.

Skipton says it is “delighted” with the upgrade, arguing the credit rating reflects a strong performance in the Society’s core mortgage and savings business and its focus in growing the low risk prime residential loan book.

The move comes after Fitch last year reviewed the building society sector in the second half of 2013, and reaffirmed the Society’s rating of BBB-/F3.

David Cutter, Skipton’s group chief executive, said: “It is pleasing that Fitch has acknowledged the improvement the Society has made over the last two years.

“We have continued to focus on growing our core business of mortgages and savings and have improved our financial strength, profits and capital.”