Outlook on UK’s Aa2 rating changed to negativeChristian Fernsby ▼ | November 10, 2019
Moody's has signalled it is poised to downgrade the credit rating on Britain's government debt, warning that Brexit has triggered an "erosion in institutional strength" that threatens the UK's financial credibility.
United Kingdom UK banks
That implies a cut to the actual rating could be coming imminently.
At Aa2, Britain is on the same level as France but below Germany's UK banks rating.
The downgrade would be seen as a particular blow for Chancellor Sajid Javid, coming barely more than 24 hours after he unveiled new fiscal rules designed to keep Britain's public finances in check after the election.
However, the ratings agency said that "no matter what the outcome is of the general election Moody's sees widespread political pressures for higher expenditures with no clear plan to increase revenues to finance this spending".
Moody's said neither of the main political parties in next month's election were likely to tackle high borrowing levels which Brexit had made even harder to fix. ■