Moody’s downgrades outlook on UK from “stable” to “negative”

 Moody’s last night downgraded its outlook on the UK’s rating to negative, warning that the country was at risk of permanently losing credibility over economic policy after the mini-budget.

In a late ratings update, the agency revised down its outlook on the UK from “stable” to “negative” but maintained its overall Aa3 rating. Moody’s became the third of the big three raters, alongside Fitch and S&P, to revise down the UK’s borrowing outlook in the past month.

Moody’s said its revision was driven by risks to the UK’s rising debt servicing costs, caused by higher interest rates, growing government borrowing and “risk of a sustained weakening in policy credibility”. Moody’s also revised down its outlook for the Bank of England to “negative”.

Source: The Times of UK

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