Moody's Downgraded UK Credit Outlook Because of Brexit

Moody's downgraded the UK credit rating from "stable" to "negative" on Friday, Reuters reported.

The reason for the decision is that Brexit has triggered an "erosion in institutional strength" that threatens the UK's financial credibility.

The Agency confirms the UK's assessment of AA2.

 "It would be optimistic to assume that the previously cohesive, predictable approach to legislation and policymaking in the UK will return once Brexit is no longer a contentious issue, however that is achieved," the rating agency said.

"No matter what the outcome is of the general election Moody's sees widespread political pressures for higher expenditures with no clear plan to increase revenues to finance this spending", the ratings agency said, Sky News reported.

Meanwhile, the results of a sociological survey of electoral attitudes were announced ahead of the December 12th parliamentary elections. A panelbase survey shows that support for the Conservative Party remains unchanged - 40 percent. Labor is supported by 30 percent, or one point more than at the beginning of the campaign, BTA reported.

Pro-European Liberal Democrats are also increasing their support by one point, reaching 15 percent. The Brexit party declines by one percentage point and is supported by 8 percent of voters.