Credit ratings agency Moody's on Friday downgraded the outlook for Britain's debt, citing mounting policy challenges amid the Brexit debate.
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WASHINGTON: Moody's on Friday (Nov 8) downgraded the outlook for Britain's debt, citing mounting policy challenges amid the Brexit debate.
The agency cut the outlook to negative from stable but kept the debt at the investment grade Aa2.
The ratings agency Fitch had similarly put Britain on "negative watch" in February.
Pointing to "paralysis that has characterized the Brexit-era policymaking process," Moody's said London has "struggled to cope with the magnitude of policy challenges that they currently face."
In addition, Britain's "economic and fiscal strength are likely to be weaker going forward and more susceptible to shocks than previously assumed," Moody's said in a statement.
Britons voted by 52 per cent to leave the European Union in a 2016 referendum, but MPs have been divided over how, when and even if that result should be delivered.
The political wrangling has forced two successive Conservative governments to ask the European Union to delay Brexit three times this year. It is now set for January 31.
Current Tory Prime Minister Boris Johnson hopes the snap election next month will give him a majority in the House of Commons to allowRead More – Source