The rating decreased from Aa2 to Aa3, which is the fourth highest level in the rating.
Credit rating agency Moody’s downgraded Britain’s credit rating by a notch late Friday. According to the classifier, the reason is the deteriorating economic situation in Britain, which is being exacerbated by Brexit.
The UK rating was downgraded from Aa2 to Aa3, the fourth highest level in the rating.
However, Moody’s changed its credit rating outlook from negative to stable. GuardianAccording to the magazine, the reason is that the credit rating agency believes the country’s debt burden will stabilize next year.
The last time Moody’s downgraded the UK was in September 2017. Britain’s financial strength has since weakened, the rating agency estimates. According to it, the country’s economic growth has been significantly weaker than expected and the trend is expected to continue in the future.
The coronavirus pandemic has also hit Britain and the country’s economy hard.
Moody’s According to him, Britain’s decision to leave the EU and the stalemate in concluding a new trade agreement that followed the decision have further weakened the country’s economic outlook.
Last Friday, the continuation of negotiations on the future of the EU-Britain was again unclear. President of the European Commission Ursula von der Leyen commented On Twitterthat EU negotiators will head to London next week to intensify negotiations. The Prime Minister of the United Kingdom Boris Johnson for his part, he said the country must prepare for an unconventional EU resignation.
Moody’s view is that even if a trade agreement is reached by the end of the year, Brexit will still weigh on both private investment and economic growth.
Britain lost its three A credit ratings to all major credit rating agencies after a Brexit vote in the summer of 2016. The country was then knocked out of the top group by Standard & Poor’s as well as Fitch. Moody’s dropped out of Britain’s top class as early as 2013.