Moody's agency lowered UK's credit rating one step, pointing out that the state's initiatives to adjust the public finances had been driven off track and Brexit would be pulling down the economy.
Back in 2013 Moody's downgraded Britain from the highest AAA rating and was the first agency to do that, now it has demoted the country from Aa1 to Aa2.
UK managed to decrease its budgetary deficit from 10% of production in 2010 down to 2.3% in 2016-2017 accounting year, further the government is willing to reduce debt as a production share from 2018-2019.
However, the rating agency reported that the prospects for the public finances had largely slipped in view of the fiscal consolidation initiatives uncertainty and the anticipated growth of debt.
Onwards burden on the budget would be greater due to a damaged UK economy which is probable following Brexit, and it would get the attention of the government away from other issues, Moody’s said.
Fiscal pressures will be growing stronger by the diminishing medium-term economic power which could be the outcome of UK’s leaving the EU and the way it happens, and by the mounting problems to policy-making considering the difficulties of Brexit talks and internal political changes linked to it, it also said.