Moody's downgrades Britain debt outlook to negative

Credit rating agency Moody's on Friday downgraded the outlook for Britain's debt, citing increasing difficulty dealing with policy challenges the country faces amid the Brexit debate. The agency cut the outlook to negative from stable but kept the debt grade at Aa2.

Pointing to "paralysis that has characterized the Brexit-era policymaking process," Moody's said London has "struggled to cope with the magnitude of policy challenges that they currently face." In addition, Britain's "economic and fiscal strength is likely to be weaker going forward and more susceptible to shocks than previously assumed," Moody's said in a statement.