Moody's agency downgrades UK's rating

Baku. 23 September. REPORT.AZ/ International rating agency Moody's knocks the UK’s rating down from Aa1 to Aa2.

Report informs referring to the agency’s statement.

Moody’s revised up its outlook on the country from negative to stable.

According to Moody's, Brexit weakened the financial capability of the government.

“Moreover, political and social pressures will be exacerbated by the erosion of the UK’s medium-term economic strength that is likely to result from the manner of its departure from the European Union. Because beginning from 2015 the government started to decrease the budget and social security expenses”, Moody’s said.

Interestingly, at the time of limiting its financial capacity, official London has allocated 1 bln GBP for the Northern Ireland.

According to experts, government’s decision to bring down budget deficit to 1% of economic output by 2022 (currently it is 3-3,5%) will remain ineffectual.

Last time Moody's has reviewed credit rating of UK on February 2013. At that time rating was downgraded from “Aaa” to “Aa1” level. Outlook rating was stable. 

After Brexit Moody’s revised up its outlook on the country from stable to negative.