The economic fallout from Britain’s surprise decision to leave the European Union could continue for a while, with Moody’s lowering the country’s long-term issuer and debt rating from “stable” to “negative.”
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The rating affects rates the UK must pay to borrow money. Both Moody’s and competitor Fitch had already set Britain’s credit rating at Aa1 (the second-highest level under AAA) before Thursday’s referendum, but the outcome will see the rating continue — or even drop further.
Rival ratings agency Standard and Poor’s still has the UK at AAA, though is understood to be revising its outlook over the next day or two.
Uncertainty Causes Economic Turmoil, UK Credit Rating Downgraded
Although the UK has not yet made any legal moves towards exiting the EU, its long-term debt and issuer ratings reflect a period of economic uncertainty that is likely to follow the exit.
It will now have to re-negotiate its trade and economic ties to the EU, which could take years to decide.
While the EU is likely to want Britain’s co-operation on some level to meet its own economic goals, a desire for retribution among Europe’s central