UK’s credit rating could be downgraded, says Moody’s

5
A flag containing both the Union Jack and EU flagImage copyrightPA Media

The UK’s credit rating could be downgraded, according to ratings agency Moody’s, which says Brexit has caused “paralysis in policy-making”.

It has changed the outlook on the UK’s current rating – which is a marker of how likely it is to pay back its debts – from “stable” to “negative”.

Moody’s also criticised the general election promises to raise spending with “no clear plan” to finance it.

The UK is currently rated Aa2 – the third highest grade.

Credit ratings agencies grade countries and institutions by their credit-worthiness. That in turn can affect the amount that it costs countries to borrow money.