Ratings agency Moody’s has downgraded Britain’s credit rating by one notch, bringing it into line with the other major credit companies Fitch and Standard & Poor’s.
Moody’s says Britain’s plans to fix the public finances had been knocked off course, and Brexit would weigh in on the economy.
The agency cut Britain’s rating to Aa2 from Aa1, underscoring the risks that leaving the EU poses for the world’s fifth-biggest economy.
Moody’s said it was no longer confident that Britain would secure a new free trade agreement with the EU, which its experts say would ease the Brexit hit.
The British government said Moody’s downgrade was made after a meeting held last Tuesday, and did not reflect a speech made by British Prime Minister Theresa May on Friday (September 22). Addressing European leaders in the Italian city of Florence, Mrs. May set out an ambitious vision for the UK’s future relationship with the EU.