Moody’s downgrades UK’s credit outlook

epa03492331 (FILE) A file picture dated 13 July 2011 shows the Moody's logo outside the offices of Moody's Corporation in New York, New York, USA. The ratings agency Moody's announced late 30 November 2012 in Frankfurt that it had downgraded the European Stability Mechanism, the eurozone's newly minted permanent bailout fund, from the top rating of Aaa to Aa1. EPA/ANDREW GOMBERT

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Leading ratings agency 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.

The ratings agency, which scores debt on the basis of how likely they are to default, changed the outlook on its Aa2 rating on the debt issued by the UK government from “stable” to “negative”.

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 AAA rating.

Via Sky News

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