UK credit score outlook revised to negative by Moody's on political drama

The rating firm said the change in the outlook was driven by "heightened unpredictability in policymaking" in UK amid weaker growth prospects and high inflation

The outlook for the UK’s credit score was revised to negative by Moody’s Investors Service, which cited factors including increased unpredictability in policymaking.
 

The company affirmed the country’s rating at Aa3, according to a statement. The rating action comes several weeks after the firm warned the UK government’s mini-budget, which was later scrapped by outgoing Prime Minister Liz Truss, risked doing lasting damage to the nation’s debt affordability.

The rating firm said the change in the outlook was driven by “heightened unpredictability in policymaking” amid weaker growth prospects and high inflation and “risks to debt affordability from likely higher borrowing.”