The Brexit has a lot of side effects that will affect the financial situation of both the EU and the UK. Moody’s one of the leading credit rating institutions in the world, lowered the UK’s sovereign credit rating. This “negative” outlook is not something most Britons were looking for, but they will have to face the consequences of their voting.
Although not everyone pays much attention to credit ratings these days, they can serve as reliable indicators or the financial future of a particular country. Over in the UK, the long-term outlook has dropped from “stable” to “negative” as far as Moody’s is concerned. This decision could lead to lower ratings in the future.
Credit Rating Concerns For The UK
What these credit ratings do is determine the cost at which governments and enterprises can issue debt. A lower score will have an impact on the UK economy over the coming years. While the situation is far from dire, this move was not entirely unexpected either. After all, the Brexit is sending shockwaves throughout the global economy.
A Moody’s representative told the media that: