UK Credit Rating Falls

Sep 25, 2017

Prime Minister Theresa May delivered a speech in Florence, Italy last week. It was intended to break open the stalled Brexit negotiations. But it appears that the only thing that did break was the United Kingdom’s credit rating. The bond rating company, Moody’s, downgraded the country’s credit rating another notch. Since 2013, Britain had a Aa1 rating, one notch below triple A. Moody’s said, “The outlook for the Uk”s public finances has weakened significantly since the negative outlook on the Aa1 rating was assigned, with the government’s fiscal consolidation plans increasingly in question and the debt burden expected to continue to rise.” The rating company went on to say that it doubted that the “UK government will be able to secure a replacement free trade agreement with the EU which substantially mitigates the negative economic impact of Brexit.” Britain’s Treasury disputed the decision saying that the assessments “about Brexit . . . are outdated.”