Moody’s cuts United Kingdom

Moody’s Investors Service said it downgraded the government of the United Kingdom’s long-term issuer and senior unsecured ratings to Aa3 from Aa2. Concurrently, the agency changed the outlook to stable from negative.

Moody’s also downgraded the Bank of England’s long-term issuer and senior unsecured bond ratings to Aa3 from Aa2. The agency changed the outlook to stable from negative.

In explaining the downgrade, Moody’s cited a weakening in the U.K. economic strength, the inability to reach a trade deal with the European Union, a decline in the country’s fiscal power from higher debt and a weakening in the U.K.’s institutions and governance.

The stable outlook reflects the country’s intrinsic economic and institutional strengths and Moody’s expectations debt will stabilize at its current level, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.