Moody's cut UK's credit outlook to 'negative'

Moody's said the referendum result would have "negative implications for the country's medium-term growth outlook", and it lowered the UK's long-term issuer and debt ratings to "negative" from "stable".

It added: "In Moody's view, the negative effect from lower economic growth will outweigh the fiscal savings from the UK no longer having to contribute to the EU budget."

It also said the UK had one of the largest budget deficits among advanced economies.

Colin Ellis, chief credit officer at Moody's, told BBC Radio 4's Today programme the UK's credit rating could have an impact on UK households in the long term.

"The government borrowing rate is normally the benchmark - it is the rate at which other interest rates in the economy are set," he said.

"A lower rating would typically correspond to higher borrowing costs, and that would be felt not just by the government but by businesses and households in the longer term."

http://www.bbc.com/news/uk-politics-eu-referendum-36626201