Bonds News

Moody's cuts UK's debt rating on weak economic growth

Oct 16 (Reuters) - Ratings agency Moody’s lowered the United Kingdom’s sovereign debt rating to “Aa3” from “Aa2” on Friday, citing weakening economic and fiscal strength.

Negative long-term structural dynamics have been worsened by Britain’s decision to leave the European Union and its subsequent inability to reach a trade deal that meaningfully replicates the benefits of EU membership, Moody’s said in a statement.

The move comes as Prime Minister Boris Johnson said on Friday that the UK should get ready for a no-deal Brexit outcome, but stopped short of announcing that the country would exit the trade talks.

The agency revised the outlook on the country’s sovereign debt to “stable” from “negative.”

Reporting by Aditi Sebastian; Editing by Devika Syamnath