Tuesday, 20 Oct 2020

Moody's cuts UK's debt rating on weak economic growth

Oct 16 (Reuters) – Ratings agency Moody’s lowered the United Kingdom’s sovereign debt rating to “Aa3” from “Aa2” on Friday, citing weakening economic and fiscal strength.

Negative long-term structural dynamics have been worsened by Britain’s decision to leave the European Union and its subsequent inability to reach a trade deal that meaningfully replicates the benefits of EU membership, Moody’s said in a statement.

The move comes as Prime Minister Boris Johnson said on Friday that the UK should get ready for a no-deal Brexit outcome, but stopped short of announcing that the country would exit the trade talks.

The agency revised the outlook on the country’s sovereign debt to “stable” from “negative.”

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