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UK's downgrade.


 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 rating update, the agency revised 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 the UK’s borrowing outlook in the past month. Moody’s said risks drove its revision 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 its outlook for the Bank of England to «negative». Moody’s said the UK needed to have «confidence in its commitment to fiscal prudence» to return to a stable outlook. Moody’s highlighted several of the UK’s economic strengths, including its independent institutions and a debt ratio that was in line with significant European peers.

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  1. William24 October 2022 at 17:40

    This downgrade is fair at the moment as the UK is in an economic crisis. A better PM could change things around but let's wait and see who becomes PM and what his decisions are. Johnson was not good and Liz Truss was plain bad so anything would be better, right?

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