PARIS / LONDON (dpa-AFX) – The US rating agency Moody’s has lowered the creditworthiness of Great Britain by one notch due to Brexit and the Corona crisis. Moody’s is now rating the UK’s long-term debt “Aa3” (previously “Aa2”), the rating agency announced on Friday evening in Paris.
The agency cited the decline in economic strength as the main reason since it checked the credit rating from August 2017. The financial strength of the state has declined and the state institutions and the leadership have been weakened in recent years, Moody’s justified the downgrade.
After the end of the Brexit transition phase, Great Britain threatens a hard break with the European Union in around ten weeks. That would lead to tariffs and other trade barriers. The prospects that a trade pact will be reached with the EU after all are bad. Many companies anticipate major economic losses.
The United Kingdom is also particularly badly affected by the corona pandemic. British Prime Minister Boris Johnson is accused of being a poor crisis manager. It is said that he made the situation worse through his dangling course.
After having received the fourth highest credit rating from Moody’s, Great Britain is now still in the area of safe investments. The agency assesses the outlook for the rating as stable./men/DP/edh