UK credit rating
Moody’s has signalled there is a possibility it will downgrade the credit rating on government debt amid an “erosion in institutional strength” caused by Brexit.
The ratings agency has changed the outlook on its Aa2 rating of the UK’s debt from “stable” to “negative”, implying a rating cut could be imminent.
The current Aa2 rating is on par with France but below Germany’s AAA rating.
The agency added the uncertainty around Brexit and effects of the leaving the European Union would be long-lasting.
Britain’s AAA rating was downgraded in 2012 despite former chancellor George Osborne pledging to maintain it.
Moody’s said the reason for a change in its outlook was because “UK institutions have weakened as they have struggled to cope with the magnitude of policy challenges that they currently face, including those that relate to fiscal policy”.