This archive report was first published on 9 November 2019.
Published on November 9, 2019, Moody's Investors Service downgraded Britain's debt outlook to negative, a move that reflects the country's struggling economy and uncertain future.
The ratings agency cited 'paralysis that has characterized the Brexit-era policymaking process' as a major factor in its decision, stating that London has 'struggled to cope with the magnitude of policy challenges that they currently face.'
Moody's also noted that Britain's 'economic and fiscal strength are likely to be weaker going forward and more susceptible to shocks than previously assumed.'
The move comes as Britain prepares to leave the European Union on January 31, 2020, following a 2016 referendum in which 52% of voters chose to leave the EU.
Current Prime Minister Boris Johnson hopes a snap election next month will give him a majority in the House of Commons to allow him to ratify his exit terms and finally leave the EU.
Moody's warned that 'institutional weakening may also impact the UK's economic strength, through its effect on the investment climate and on the UK's attractiveness to skilled and unskilled foreign labor.'
Britain remains highly indebted, and Moody's expects this to continue in the next three to four years.
