"Moody’s" He lowers his economic outlook for the UK from "stable" to me "negative"

Rating agency Moody’s downgraded the outlook for the UK economy from “stable” to “negative” amid political instability and high inflation in the country.

The agency attributed the change in expectations to policy unpredictability amid weak growth prospects and high inflation, as well as risks to debt sustainability from potentially high borrowing and the risk of continued weakness in policy confidence.

Rating agencies depend in their assessment on the strength of a country’s economy to determine its ability to repay debts.

But Moody’s and other major agencies such as Standard & Poor’s have maintained the UK’s credit rating.

Ratings affect the cost the government pays for borrowing in international financial markets. Theoretically, this means that high ratings correspond to low benefits and vice versa.

Source: British media

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