Moody’s downgrades UK sovereign rating due to weak economic growth

People shopping cross the street at Oxford Circus, in the center of the chain store area in London, England, Oct. 16, 2020. REUTERS / Toby Melville

Oct 16 (Reuters) – Rating agency Moody’s downgraded the UK’s sovereign debt to “Aa3” from “Aa2” on Friday, citing weakening economic and fiscal strength.

Long-term negative structural dynamics have been compounded by the UK’s decision to leave the European Union and its subsequent inability to reach a trade deal that significantly replicates the benefits of belonging to the bloc, Moody’s said in a statement.

British Prime Minister Boris Johnson said on Friday the UK should prepare for a no-deal Brexit, but stopped short of announcing that the country would abandon trade talks.

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

Report by Aditi Sebastian; Edited in Spanish by Javier Leira

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