“We consider commitment to financial prudence a governance consideration within its ESG framework,” the agency says.
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On Friday, the 20th of this month, Moody’s affirmed the UK government’s rating at Aa3, and changed the outlook from negative to stable, driven by renewed political predictability in the country and effective fiscal policy.
“We consider the commitment to financial prudence to be a governance consideration within the scope of its environmental, social and governance framework,” the risk rating agency said, justifying the change in perspective, after stating that it expects continuity in the country’s medium-term financial plan, with oversight by an independent office, giving Greater credibility of the UK scenario.
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The rating was maintained, supported by the country’s economic resilience, with an economy that is “rich, competitive and diversified, despite the decline in the effectiveness of economic and financial policy formulation in recent years.” Moody’s also expects UK public debt to remain at around 100% of GDP.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
