The UK’s economic outlook has been lowered to “negative” by ratings agency Moody’s due to political instability and high inflation.
Moody’s changed the UK’s outlook – which is a marker of how likely it is to pay back debts – from “stable”, according to BBC.
Rating agencies, in essence, rate a country on the strength of its economy.
Moody’s along with another of the big credit rating agencies Standard & Poor’s (S&P) maintained their assessments of the UK’s credit rating.
Rating agencies give governments (or large companies) a score on how likely they are to pay back their debt.
The rating affects how much it costs governments to borrow money in the international financial markets. In theory, a high credit rating means a lower interest rate (and vice versa).
Moody’s said there were “risks to the UK’s debt affordability”, but kept its rating of Aa3, the fourth-highest level on its scale.
SOURCE: JORDAN NEWS AGENCY