Ratings agency Moody’s warned on Friday (8 November) that the UK’s credit rating could be cut further due to the uncertainty of Brexit and rising UK debt levels.
It downgraded its outlook on UK credit from stable to negative, stating the “paralysis” of Brexit had weakened the UK’s institutional framework and fiscal policy commitments.
Tim Li, credit analyst at Quilter Investors, said: “The UK joins a small group of countries to have their credit outlook cut to negative this year. It remains a highly rated country and has no issues with accessing capital markets. The most concerning part relates to the weakening of ‘institutional architecture’-the election will decide if that materially changes from here-but in that scenario ratings agencies may be forced to cut sharply.”